Households are being paid to limit their electricity use at certain times as part of a new Demand Flexibility Service (DFS) scheme to balance energy supply and demand during cold weather.
The amounts of money aren't huge - it’s better to think of it as a small discount to say thank you for taking part in the scheme, which is operated by the National Grid.
The aim is to make sure that no more electricity is taken out of the system than is being put in at any given time. On a cold day when people get home from school and work, there’s a sudden, huge spike in the amount of electricity use around the country.
Households that have opted into the scheme through their energy provider will be paid for every unit of electricity they don't use during the hour, as compared to how much their household would usually use at the same time. You need to have a smart meter to be able to take part.
You can still use some electricity - for low-energy light bulbs, for example. But avoiding using energy-hungry appliances, such as ovens, washing machines and dishwashers, during the time slot will lead to financial rewards.
Traditionally, when there is a spike in demand for electricity, more is produced (for example by firing up a coal power station, or burning more gas). But with concerns about gas supplies from Europe and an ambition to scale back reliance on coal-powered electricity, the new scheme calls on households to reduce demand instead.
The National Grid sets the days and times the scheme operates. So far, it has run on 23 and 24 January at peak times in the early evening, when energy use is highest.
Get started with 10 ways to save money on energy.
The Demand Flexibility Service energy saving scheme: who can take part?
To join in, you’ll need to:
- Be a customer of an energy supplier that’s participating in the scheme
- Have a smart meter that’s set up to send half-hourly readings
- Opt-in. Some energy firms are only inviting a small group of customers to take part.
National Grid, which runs the scheme, said 26 suppliers have signed up. Some have different names for the scheme:
- British Gas (Peak Save)
- EDF Energy
- Eon Next (Energy Shift)
- Octopus Energy (Saving Sessions)
- Ovo Energy (Power Move)
- Shell Energy.
You must have a smart meter so that your energy company can measure how much electricity you are using, and saving, during the relevant times and how this compares with your normal use.
Then you’ll need to have signed up with your supplier before the session starts.
So far, more than one million homes and businesses in England, Scotland and Wales have signed up, according to National Grid’s electricity system operator.
Octopus Energy said that 400,000 customers took part in its 23 January 'Saving Session', reducing their demand by an average 60% and saving around 200 megawatt hours over the hour from 5-6pm - enough to power the city of Bristol.
When the scheme operates and how long the sessions last are set by the National Grid. If you've signed up, your energy company will let you know in advance of the hour taking place. It is scheduled to run until March 2023.
How much money could I earn?
You’re unlikely to make a lot of cash but, while we’re facing big energy bills, earning anything towards them is an attractive prospect.
Savings can range from a few pounds to £20, depending on how much electricity you save, according to National Grid.
Exactly how much you could earn depends on your energy supplier, how much electricity you’re able to save and how often you participate. It also depends on how much the National Grid pays suppliers whose customers help save energy.
National Grid said it paid suppliers between £3 and £6 for every kilowatt hour of energy saved between 5pm and 6pm on 23 January. Energy firms decide how much to pass on to participating customers.
Here are a few examples of savings:
- British Gas expects customers to earn the equivalent of six days’ free electricity over the duration of the scheme. It says it will pay customers double the amount it gets from National Grid for each unit of energy saved (which it says could be £3). Customers receive their earnings as credit on their electricity account.
- Octopus Energy expects customers to earn around £36 for taking part in 12 sessions, assuming they save 1kWh each time. Customers can exchange the points for energy credit, cash or (in future) prizes and donations to Octopus Energy’s fund to help those struggling with their bills.
Keen to start saving? See our ideas for how to use less electricity.
Do I have to use less electricity if I sign up?
No. If you sign up to the scheme and can’t avoid using electricity during the peak times, it’s ok.
It’s optional so you only have to take part on each occasion if you feel able to.
Energy firms will tell you when there’s a new session of the scheme coming up so you can plan ahead. You can then opt-in if you’d like to take part.
Need help paying your energy bills? See if you could get the Cold Weather Payment, Winter Fuel Payment and Fuel Direct.
source https://www.which.co.uk/news/article/households-are-being-paid-to-use-less-energy-heres-how-to-take-part-aDQ885o3LGQQ