Understanding AI in the energy sector: the benefits, the risks and your rights

Artificial Intelligence (AI) is starting to play a bigger role in how companies deliver energy services across Great Britain (England, Scotland and Wales). It can help energy companies manage supply and demand, improve your customer service, and run energy systems more efficiently.

As the energy regulator for Great Britain, Ofgem oversees how AI is used by energy companies and sets rules to ensure fair treatment of energy consumers. The Energy Ombudsman is here to help resolve disputes between consumers and energy suppliers or network operators on a range of areas.

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.

How AI affects you as an energy consumer

AI is already being used in the energy sector in ways that can affect your experience as a consumer both directly and indirectly. For example, smart meters might use AI to help track your energy use, offer personalised plans and generate bills, and you may have already spoken to a chatbot to help with enquiries, complaints, or finding the right tariff. AI can also help energy companies identify and support customers who may need extra help.

AI can process large amounts of data far quicker than a human, so it can also be used to help manage energy systems and networks. This means it can help make sure energy is delivered efficiently and reliably and spot issues early to keep energy infrastructure running smoothly, but it can have challenges.

What we expect from companies

While AI can improve energy services, there are also risks. For example, if the data used by AI systems is biased or incomplete, it could lead to unfair outcomes for energy consumers.

Some people may not be able to use digital systems, find it hard to use them, or may not realise they’re interacting with AI, especially in AI customer-facing interactions such as chatbots, automated emails, or virtual assistants.

We work to ensure that the companies we regulate protect and treat energy consumers fairly. This also applies when these companies use AI. To help protect energy consumers, energy companies should:

• be clear and transparent when they are using AI
• make it easy to speak to a human if needed
• offer alternatives for those who cannot or do not want to use digital tools
• regularly check AI systems to make sure those systems are fair, accurate, and safe and are providing the right outcomes for energy consumers

Energy companies should also make sure they comply with relevant legislation and regulatory frameworks and requirements.

Know your rights

When energy companies use AI, they may use your personal data. Under UK law, the UK General Data Protection Regulations (UK GDPR), the Data Protection Act 2018 (DPA) and the Data (Use and Access) Act 2025 (DUAA) give you rights to help protect your personal data and ensure fair treatment.

These rights apply if your data is:

• used to train an AI system
• used to make decisions about you
• included in the AI model itself

Under UK GDPR and DPA, you have rights over your personal data and to:

• be informed about how your personal data is collected and used
• ask what data is held about you
• ask for your personal data to be deleted, for example if it is wrong or no longer needed, or rectified
• object to how your personal data is processed
• move, copy or transfer your personal data to another energy provider if you choose

If your personal data is used to train or run an AI system, these rights still apply. Organisations must be clear about how they use your personal data, including informing you if your personal data is being used for AI, automated decision making or profiling and ensure it is handled fairly and securely.

If an AI system cannot identify you directly or indirectly, then some rights may not apply. But if you provide extra information that makes identification possible, your rights will still apply.

If things go wrong

Consumers should feel supported, listened to and confident they can get help when they need it. If AI creates confusion, removes choice or leads to unfair outcomes, Energy Ombudsman is here to help put things right.

If you suspect you have been treated unfairly because of AI systems, you have the right to complain to your supplier. Under DUAA, companies must offer a clear complaints process and respond promptly. If you're not satisfied, you can escalate your complaint to the Energy Ombudsman, Citizens Advice, or the Information Commissioner’s Office (ICO), depending on the nature of your complaint.

The Equality Act 2010 protects you from discrimination, whether decisions are made by people or AI systems.

Safe, secure and environmentally sustainable AI can play an important role in improving your experience as an energy consumer through improved services and more flexible energy systems.

If you are unsure who your supplier is and need to contact them, use Ofgem's find your energy supplier page.