National Grid ESO says the value of energy discounts for households that cut electricity use during peak times will be raised in an effort to turn homes into “individual power plants.” “.
Households will now be paid £3 per kilowatt-hour instead of 52p if they avoid high power consuming activities – such as cooking and using washing machines – when demand is high during peak hours.
The plan is to ease pressure on the UK’s electricity grid this winter, amid potential energy shortages.
Writing in The Guardian, Fintan Slye, National Grid’s director of electrical operations, said: “Businesses and homes can become virtual powerhouses and, importantly, get paid the same.
“For a single consumer, that means a typical household could save around £100, and industrial and commercial businesses with greater energy use could save. double this amount.
“We’re working with Ofgem to launch this program in November and have it rolled out through energy providers. If you’re interested in participating or understand what you might be paid for, please contact your energy supplier.”
The new service will only be available to homes with smart meters installed.
The peak time for electricity is in the evening, from 5pm to 8pm – after most people have finished working and it’s starting to get dark outside.
So far, Sky News understands that Octopus and Ovo Energy have indicated they may participate in the rebate program after the trial earlier this year. It is not known if any of the other six big boys will follow suit.
Commerce website Edie is reporting that Ovo customers who use 12.5% less energy than their family would normally consume in a day during peak times will be eligible for the discount. Edie said Ovo estimated most homes used about 19% of their average daily usage at the time.
It comes in the middle a warning the UK could face planned power outages this winter.
Under the Emergency Power Supply Code (ESEC), the public will be notified the day before a potential disconnection and an interim period of the planned power cut means households may be without power for up to three hours at a time.
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“As a result of Russia’s war in Ukraine, European gas is scarce and prices are high,” Slye continued.
“At the same time, France’s nuclear fleet has experienced a higher number of shutdowns than expected. Energy shortages in Europe could have a serious impact on energy supplies in the UK.”
However, he added: “It’s a worst-case scenario that our analysis tells us is unlikely to materialize.”
