Millions of households to be paid to cut energy use again this winter

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National Grid wants to run its Demand Flexibility Service again (Image: Getty Images/iStockphoto)
National Grid wants to run its Demand Flexibility Service again (Image: Getty Images/iStockphoto)

Millions of households will be paid to cut their electricity use at peak times again this winter as part of plans to prevent blackouts.

National Grid plans to run its Demand Flexibility Scheme scheme again during the colder months. The scheme encourages people not to use energy-guzzling appliances such as washing machines and ovens during times when power is most in demand, normally in the evenings when people get home from work.

The idea is it will help protect gas supplies and prevent blackouts. But in order to take part, you’ll need to have a smart meter installed and your energy supplier must be signed up. Like last winter, it is expected National Grid will pay at least £3 per kilowatt hour of power saved.

Each household earned an average of less than £10 in total last winter, although some people with high energy use made more than this. The scheme is still subject to approval by Ofgem but The Times reports it will be granted soon.

Jake Rigg,corporate affairs director at the National Grid ESO, said: “The ESO will be reintroducing the demand flexibility service for this winter and is keen for more consumers, both large and small, to get involved. We want to work with industry to build on the past success of this new and innovative service.

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“Across last winter the Demand Flexibility Service successfully demonstrated the interest of consumers and businesses in playing a more active role in balancing our electricity needs and to be rewarded with savings for their action in the process.”

It comes as households are set to pay less for energy from October as the Ofgem price cap falls from £2,074 a year to £1,923 for a typical dual fuel household paying by direct debit. While this will be good news for families that have faced rocketing gas and electricity costs after the Covid pandemic and following the Russian invasion of Ukraine, energy bills are still much higher than they used to be.

The Ofgem price cap stood at £1,277 a year in October 2021 and £1,042 a year in October 2020. On top of higher than normal prices, households will also not be receiving the £400 energy bill discount this winter from the Government, which was issued in £66 or £67 monthly instalments from October 2022 until March this year.

Levi Winchester

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