Why Open Finance and Embedded Finance are transforming the Energy & Utilities sector in the UK 

What characterises the energy and utilities sector in the United Kingdom? What financial challenges do companies operating in the utilities sector face? And how can open finance and embedded finance help address the growing complexity of the UK energy market? 

These are some of the key questions explored in this article, focusing on how a new approach to managing payments and financial flows can simplify operations, improve efficiency and enhance the payment experience for customers across the energy and utilities sector. 

The transformation of the UK Utilities sector: renewables, digitalisation and volatility 

One of the main drivers reshaping the UK utilities sector is the acceleration of the energy transition. Renewable sources now account for just under 45% of the UK’s electricity generation, marking a structural shift in the national energy mix and reinforcing the need for more flexible and resilient systems.¹ 

At the same time, the energy and utilities sector continues to face significant price volatility. UK industrial and commercial electricity prices remain above the median of comparable advanced economies, putting pressure on margins and increasing financial risk for operators.² 

Wholesale electricity and gas markets in the UK further reflect this volatility, highlighting the importance of efficient financial processes and robust cash-flow management across the utilities sector.⁴ 

Infrastructure and digital investment in the UK Energy & Utilities sector 

The UK energy and utilities sector is undergoing a phase of structural investment, driven by the need to modernise infrastructure, support the energy transition and enhance system resilience. Industry and institutional analyses underline that reaching net-zero targets will require sustained capital allocation across electricity networks, digital platforms and smart infrastructure.¹ 

A growing share of investment is focused on network reinforcement and flexibility, as higher penetration of renewable energy increases operational complexity for transmission and distribution systems. Grid digitalisation, advanced monitoring tools and data-driven optimisation are becoming essential to ensure reliability, reduce losses and manage intermittency. 

From a market perspective, the UK business energy segment alone represents a significant economic value, reflecting the scale and sophistication of commercial and industrial energy consumption.⁵ This reinforces the need for robust operational and financial infrastructures capable of supporting high transaction volumes, complex billing models and diversified payment flows. 

At European level, similar dynamics are emerging. Regulators and industry reports emphasise that large-scale digital transformation—ranging from smart metering to real-time data exchange and automated settlement—is a prerequisite for improving efficiency and enabling new services across the energy and utilities sector.³⁴ 

In this context, investment is no longer limited to physical assets. Digital infrastructure, data platforms and financial process automation are increasingly recognised as strategic enablers for competitiveness, cash-flow stability and customer experience. 

Open Finance and Embedded Finance: from Open Banking to new value models 

To understand this evolution, it is useful to clarify what is open finance and how it differs from earlier models. Open banking and open finance share the same foundational principle: secure data sharing through standardised APIs. While open banking focuses primarily on current accounts and payment initiation, open finance extends this logic to a broader range of financial services, including payments, lending, savings and other financial products. 

For companies in the energy and utilities sector, open finance enables access to financial data and payment capabilities that can be integrated directly into digital platforms and operational processes. Through open finance APIs, utilities can connect financial services to their existing systems, creating more transparent, flexible and personalised customer experiences. 

Embedded Finance builds on these capabilities by integrating financial products directly into the customer journey. Payments, direct debits, instalment plans and alternative payment methods become a seamless part of how energy services are delivered, rather than separate or fragmented interactions. 

How Open Finance APIs create value for the utilities sector 

For the utilities sector, open finance APIs are not just a technical layer, but a strategic tool to improve efficiency and customer engagement. By leveraging open finance, utilities can enrich existing touchpoints—such as customer portals, mobile apps, digital service desks and contact centres—with integrated financial services. 

This approach enables companies in the energy and utilities sector to: 

• simplify payment and collection processes 
• improve cash-flow visibility and reconciliation 
• offer more flexible and customer-centric payment options 

In addition, payment orchestration platforms allow utilities to manage payments and collections across the entire value chain by: 

• handling multiple payment methods (e.g. cards, bank transfers, direct debit) across channels 
• reconciling transactions from all touchpoints, both digital and physical 
• distributing incoming funds across different stakeholders within the ecosystem 

In a context of increasing complexity and volatility, open finance and embedded finance provide the foundations for more resilient, efficient and future-ready operating models across the energy and utilities sector. 

Fabrick’s offering for the Utilities sector 

Fabrick has developed Fabrick Payment Orchestra, a single integration layer that enables companies in the Utilities sector to manage complexity across their end-to-end value chains. 

The platform manages multi-PSP and multi-acquirer payments in omnichannel contexts that may include digital touchpoints (e.g. eCommerce, marketplaces) and physical ones (e.g. kiosks, agencies, points of sale), simplifying reconciliation and revenue splitting through Financial Split Payment. 

In addition to the orchestration platform, data enrichment and collection tools that are particularly suited to this industry can also be integrated, such as Fabrick Pay by Bank. 
Customers can choose to pay utility bills through a pre-filled bank transfer, avoiding the erosion of their credit card limit, while companies can save on scheme costs. 

In the Energy & Utilities sector, Fabrick has already launched concrete projects with companies such as Edison, VIVI Energia, NeN and Fastweb Energia – to name just a few – which have chosen the platform to expand their digital value-added services. 

These collaborations enable functionalities such as advanced digital payments, digital wallets, services to enrich customer apps, integration of alternative payment methods and centralised API orchestration, transforming the Utilities sector into a service ecosystem where energy, data and finance work together to generate new revenue streams and deliver a customer experience that meets market expectations.