National Grid, the electricity system operator in Great Britain, has launched a scheme to pay households and businesses to reduce their electricity consumption during peak times, as part of its efforts to prevent blackouts and balance the supply and demand of electricity.
The scheme, called the “demand flexibility service”, is only open to customers with smart meters whose supplier or aggregator is one of the 26 firms that have signed up. The scheme gives customers 24 hours’ notice of a “saving session”, which usually lasts for an hour or an hour and a half, and requires them to reduce their consumption by at least 30%.
The customers can save power by avoiding using appliances such as washing machines, dishwashers, tumble dryers, or electric heaters during the saving session. The customers are paid between £3 and £6 for every kilowatt hour of energy saved, which is automatically applied to their bill. The customers can expect to save between £2 and £20 per saving session, depending on their usage.
The scheme was first trialed by Octopus Energy in early 2022, and has since been joined by other suppliers such as British Gas, E.ON, and EDF. The scheme was launched in November 2022, and has been activated several times since then, especially during cold weather or high demand periods.
The scheme is expected to free up about 2 gigawatts of power, enough for about 1 million homes, and help reduce carbon emissions and lower energy prices. The scheme is also seen as a way to engage consumers more actively with their energy use and make them aware of the environmental impact of their choices.
The scheme is one of the measures that National Grid has taken to cope with the energy crisis that has affected Europe and the UK in recent months. The energy crisis has been caused by a combination of factors, such as low wind output, high gas prices, reduced gas supplies from Russia, and increased demand due to the economic recovery from the pandemic.
The energy crisis has led to soaring energy bills, supplier failures, and fears of power cuts this winter. The government has also announced a support package for energy suppliers and consumers, and has urged Russia to increase its gas exports to Europe.