Will liberalised markets deliver residential demand response? Insights from industry experts in Great Britain

As electricity systems decarbonise and integrate more variable renewable generation, demand response (DR) is key to maintaining energy security and affordability. Great Britain (GB) provides a valuable case study for understanding DR development in a fully liberalised retail market where electricity suppliers, rather than system operators or vertically integrated utilities, are the primary interface with residential customers. Drawing on 33 semi-structured expert interviews from all major GB electricity suppliers, and several demand aggregators, technology firms, distribution network operators, and consultancies, this study examines how industry actors perceive opportunities and barriers to residential DR. The analysis identifies five themes shaping DR development: customer interest and equity considerations; market value extraction and commercial incentives; policy and regulatory frameworks; technological readiness, including smart metering and IT system capabilities; and organisational capacity within suppliers and aggregators. The findings show that electricity suppliers predominantly design DR products for early adopters of electric vehicles, assuming low engagement among the wider customer base. Structural barriers – such as split incentives under elective half-hourly settlement, non–time-reflective bill components, legacy IT systems, and inconsistent market rules – limit the commercial case for offering DR at scale. These dynamics risk constraining DR to a narrow segment of households and embedding distributional inequalities. The paper concludes that achieving GB's projected 10–12 GW of DR by 2030 will require stronger and more coherent policy incentives, improved market access for demand aggregators, and regulatory frameworks that broaden participation beyond early adopters and ensure equitable distribution of benefits.