The Department for Business and Trade has set up a Smart Data Council to help make it easier for consumers and small firms to switch utility providers and lower their bills.
The Council said ‘Smart Data’ involves the secure sharing of customer data with authorised third parties to help improve services for consumers. A wider adoption of Smart Data will make it easier for more consumers and small businesses to switch providers of some utilities, therefore supporting families to save money.
The newly formed council will aim to replicate the success of Open Banking in other sectors which could include telecoms and energy.
The Council said it will find ways to extend the benefits of Smart Data to new sectors, allowing consumers and businesses to find essential tariffs best suited to their needs, or reduce the loyalty penalty that customers face when trying to change providers. The loyalty penalty – the difference between what loyal and new consumers pay for the same service – currently sits at £1,114 a year for households across mobile, mortgages and broadband.
“Smart Data can be a real game changer for consumers across the UK, potentially saving people hundreds or even thousands of pounds a year,” said business and trade minister Kevin Hollinrake.
“Our new Smart Data Council will build on the success of Open Banking and spearhead measures in sectors like SME finance, energy and telecoms, increasing competition and putting more money in the pockets of consumers and small firms.
The Council will be comprised of key government departments, regulators, industry, and consumer groups. The Council will direct coordination and drive collaboration and knowledge-sharing across the key decision makers and stakeholders.
