A Deeper Look at Electricity Markets

5. The role of digitalisation in electricity markets

Digitalisation enables us to better understand and manage our energy consumption so that we can take advantage of off-peak rates. 

Examples of digitalisation include:  

• The use of digital platforms and comparison tools for easy offer comparison, online account management, and automated notifications.  
• The provision of dynamic-pricing data, which typically refers to real-time or time-of-use contracts. Variable-rate contracts may not offer time-differentiated pricing.
• Smart meters that enable near-real-time usage data (e.g. 15-minute intervals).  
• Digital platforms facilitate demand response programs and allow consumers with dynamic pricing contracts to use smart home integration, smart technologies and apps for real-time monitoring and cost optimisation.  

Digitalisation enhances transparency and flexibility, providing information to support better decision-making and cost optimisation for all contract types. Data privacy and cybersecurity are emerging issues related to digitalisation in energy systems, especially when considering consumer trust or barriers to adoption.