The Government and Ofgem have unveiled plans to encourage wider use of smarter and more-flexible grid technologies.

It has been estimated that the reforms will save consumers up to £40 billion off their energy bills through to 2050.

The Government hopes to take advantage of the UK’s changing energy system, as more localised energy generation comes from solar panels and other renewables, as well as new technologies — such as batteries and demand management systems — designed to help homes and businesses manage their energy more effectively to fit in with peaks and troughs in grid power demand.

The plan — Upgrading Our Energy System — lists 29 areas for action and includes rule changes for planning and network charging designed to remove barriers to the development of battery storage technologies.

The plan also said Ofgem would “announce details shortly” on the scope of its forthcoming Targeted Charging Review (TCR) to assess whether the current system of network residual charges should be reformed, noting that the Government is “keen to see fair changes to the charging regime that create a level playing field for storage”.

Business Secretary Greg Clark said: “A smarter energy system will create new businesses and high-skilled jobs, while making sure that our infrastructure can cope with demand. We are determined to ensure that our energy is reliable, affordable and clean.”