Electricity Demand Reduction

In the Electricity Market Reform White Paper 2011 we made a commitment to assess whether there are sufficient support and incentives available for households, businesses and organisations to improve the efficiency of their electricity use.

The Electricity Demand Reduction (EDR) project was initiated in July 2011 to fulfil this commitment.

The use of electricity in the UK

Following internal work and some expert analysis by McKinsey & Co, commissioned in February 2012, we believe that there is significant potential for greater efficiency in the use of electricity in the UK.

The research shows that:

  • there is significant potential for using electricity more efficiently in the UK across a range of sectors
  • on the current trajectory, and including existing policy, the UK is unlikely to realise all of this potential

The final version of the report, published here, takes into account public comments on the draft version that was published in July 2012:

EDR consultation

To identify what else can be done to improve electricity efficiency, we are holding a consultation: Electricity Demand Reduction: Consultation on options to encourage permanent reductions in electricity use.

Responses are due by 31 January 2013.

The consultation document:

  • looks at the opportunities in all sectors and identifies a number of barriers that are preventing this potential from being realised
  • seeks views on whether financial incentives can deliver cost effective reductions that are beneficial to society as a whole, including more targeted, sector-specific financial incentives
  • seeks views on the potential for broader approaches by sector, including whether voluntary and information proposals could be effective

Consultation responses should be emailed to edr-project@decc.gsi.gov.uk

Additional research



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