Ofgem proposes solution for consumer energy data sharing

A consultation on the design of a ‘consumer consent’ digital solution for sharing energy data with third parties in Britain has been launched by energy regulator Ofgem.

As the energy sector decentralises, the need for solutions to manage the increasing complexity of energy flows is growing rapidly with the availability of data from multiple sources key.

With restrictions on the use of data, ‘consent’ is essential to enable consumers to share their energy data with third parties to receive services to manage their consumption.

Following an earlier ‘call for input’ and subsequent stakeholder engagement Ofgem has now set out principles and potential options for a digital consent solution, such as a consumer facing dashboard or digital wallet, and covering the granting of consent through its management to its review and revocation.

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Intended to be more than a streamlined way to grant consent, the solution also must allow consumers to understand where their consent is held and manage consent on demand.

Principles for the solution set out by Ofgem include simplicity, interoperability, agility and scalability, transparency and both inclusivity and security by design.

Possible models encompass centralised, decentralised or hybrid designs, with the preference of stakeholders so far for the decentralised architecture, in which core participant data remains within the participant’s governance and other known participants have access to a standardised version of the data in an agreed format.

In the consultation Ofgem is opening up the question and whether it should make this decision or leave it to the solution provider.

Regarding the solution delivery body, Ofgem has identified three possible options, namely the energy data solution provider ElectraLink, the Retail Energy Code Company, which owns and manages the retail energy code, and the Smart Data Communication Company, which manages the smart meter data communication network.

From its analysis Ofgem suggests that the Retail Energy Code Company is best placed to
to take this work forward and also already has been developing work on consumer consent.

The consultation runs until October 4 and Ofgem intends to deliver its decision document and name the chosen delivery body sometime towards the end of the year or early in 2025.

Thereafter it is proposed that the solution will be developed throughout 2025 and into 2026 with the launch of a minimum viable product including a consumer-facing interface and consent management framework for industry in the summer of 2026.

Initially, the solution is aimed at domestic consumers and limited to the sharing of half-hourly smart meter data with the prospect of subsequent expansion to other data sets and the staged addition of non-domestic consumers.