Ofgem details AI's role in UK energy: benefits, risks, and consumer rights
Executive summary
Ofgem and the Energy Ombudsman have published a joint blog outlining the benefits and risks of AI in Great Britain's energy sector. The guidance aims to inform consumers about how AI affects them and their rights, while setting expectations for energy companies regarding responsible AI use.
Reporting based on ofgem.gov.uk
Why it matters
This article is crucial for UK AI/energy readers as it signals how the primary energy regulator, Ofgem, is approaching the integration of AI into the energy system. It highlights the regulatory expectations for fair, transparent, and responsible AI deployment, which will shape future investment and operational strategies within the sector, particularly concerning consumer interaction and data handling.
Sector impact
Analysis by AI Energy Intelligence UK
AI can process large amounts of data to help manage energy systems and networks, making sure energy is delivered efficiently and reliably. It can also help spot issues early, which could contribute to keeping energy infrastructure running smoothly and maintaining energy security.
Energy companies are expected to be transparent about AI use, provide human alternatives, offer non-digital options, and regularly audit AI systems for fairness and accuracy. They must also comply with relevant legislation and regulatory frameworks, including UK GDPR, DPA, and the Data (Use and Access) Act 2025, when deploying AI, particularly concerning consumer data.
AI is being used to track energy use via smart meters, offer personalised plans, generate bills, and power customer service chatbots. Consumers have rights under UK GDPR, DPA, and DUAA regarding their personal data used by AI, including the right to be informed, access data, rectify or delete data, and object to processing. They also have recourse to complain to suppliers, the Energy Ombudsman, Citizens Advice, or the ICO if issues arise.
Quotations
"We’re committed to making sure AI used in the energy sector is responsible, fair, and transparent, especially for people who may be vulnerable or face challenges accessing energy services."
Long-term implications
The increased integration of AI, as overseen by Ofgem, suggests a future where energy services are more personalised and efficient, but also one where robust regulatory frameworks and consumer protections, such as those outlined in the Data (Use and Access) Act 2025, will be essential. This focus on responsible AI development aims to build trust and ensure equitable access to and use of energy services for all consumers.
Frequently asked questions
How is AI used in the UK energy sector?
AI is used to manage energy supply and demand, improve customer service through chatbots, track energy use via smart meters, offer personalised plans, generate bills, and identify customers needing extra support. It also helps manage energy systems and networks to ensure efficient and reliable delivery.
What are Ofgem's expectations for energy companies using AI?
Ofgem expects energy companies to be clear and transparent about AI use, make it easy for consumers to speak to a human, offer non-digital alternatives, and regularly check AI systems for fairness, accuracy, and safety. Companies must also comply with relevant legislation like UK GDPR, DPA, and DUAA.
What are my rights regarding personal data used by AI in the energy sector?
Under UK GDPR, DPA, and DUAA, you have rights to be informed about data use, ask what data is held about you, request rectification or deletion, object to processing, and ask to transfer your data. These rights apply if your data is used to train an AI system, make decisions about you, or is included in the AI model itself.
What should I do if I suspect I've been treated unfairly due to AI systems?
If you suspect unfair treatment, you have the right to complain to your energy supplier. If unsatisfied, you can escalate your complaint to the Energy Ombudsman, Citizens Advice, or the Information Commissioner’s Office (ICO), depending on the nature of the issue.
Explore related tools
Original source
This story summarises reporting from ofgem.gov.uk. Read the original for full context.
Read on ofgem.gov.ukRecommended reports
Independent UK research that expands on the themes in this story.
The current regulatory landscape for AI, data centres and electricity in the UK, and where policy is heading over the next 24 months.
Read the report
The definitive UK view of AI's electricity, grid and infrastructure impact in 2026. An independent, evidence-based report on demand growth, data centre build-out, AI Growth Zones and the trajectory to 2035 — for UK policymakers, operators and investors.
Read the reportThe environmental cost of AI-generated answers versus conventional search, benchmarked for UK decision-makers. An independent, evidence-based comparison of electricity, water and carbon per query across Google, Gemini, ChatGPT, Copilot, Perplexity and Claude — with forecasts to 2035.
Read the reportGet the UK AI Energy briefing
Analysis on AI, electricity and the UK grid, straight to your inbox.