Households of people throughout the UK could save a combined £100,000 on energy bills through a new trial this winter.
The trial – launched by smart energy company ivie and backed by the Government’s Department for Energy Security and Net Zero – enables homes with low-carbon technologies to test a subscription-style, flat-rate energy tariff that is not dependent on usage.
Instead, homes with compatible heat pumps and/or electric vehicle chargers will choose a specific ‘bundle’ of energy use that suits their needs.
For example, they could select a package that covers heating to a specified temperature and provides energy for a set number of EV miles, all at a fixed monthly cost.
ivie and its partners have forecasted savings of 27% for heat pump running costs, and a larger 60% for EV charging costs for this new style of tariff compared to regular tariffs on the current price cap.
For homes with both heating and EV charging, the savings are set to average an impressive £294.37 from November to March 2025. With 500 trial homes being recruited across three groups (heat pump only, EV only, and both), the projected energy savings total £98,319.77 over the winter months.
The October price cap increase will raise average bills for a typical dual-fuel household from £1,558 to £1,717 per year until January when the cap will be reviewed next – and likely raised again.
However, ivie pledges that Energy Sure tariff prices will remain fixed below this cap through to the end of March.
Stephane Lee-Favier, managing director of ivie, said: “The intelligent management of low-carbon technologies can be confusing. Energy Sure solves this challenge by providing clear pricing and savings upfront, and making it easy for consumers to intelligently manage their home’s EV charging and heat pump.”
Farouk Alhassan, CEO of Tomato Energy, which has partnered with ivie to supply the tariff, said: “With consumer demand for low-carbon solutions growing, it’s clear that energy tariffs need a complete rethink to meet the evolving needs of households.
“That’s why we’re thrilled to supply the Energy Sure tariff, a first-of-its-kind, that proves how clear and simplified pricing can help transform the market while supporting customers in their transition to more electrified, low-carbon technologies like heat pumps and electric vehicles.”
Research from ivie and its coalition of partners, including Tomato Energy, Homely, Energy Systems Catapult, Cornwall Insight and Passiv, propose that making future energy tariffs as simple and streamlined as possible with “all-in” pricing will encourage the necessary uptake of low-carbon, electrified technologies for the UK to reach its Net Zero targets.
Chris Williams-Hall, project manager at Homely, commented: “We are excited to introduce a new innovative heat-as-a-service tariff, designed to simplify home heating for customers by offering a fixed, predictable cost.
“By removing the complexity of fluctuating bills, we allow users to focus on what truly matters – staying warm and comfortable.”
The trial is currently recruiting homes with compatible EV chargers and heat pumps until December 16, with the first homes set to officially start the new tariff on November 1.
Homeowners can check eligibility and register now, here.
