National Grid to pay Britons to reduce electricity usage this winter | Personal Finance | Finance newsbhunt


Britons are to be paid by National Grid for reducing their electricity usage during peak times this winter.

People signed up to the demand flexibility service will be paid to curb their usage from November to March.

Test runs will take place in November and December with consumers to be paid a maximum of £3 per kilowatt hour.

Households with Octopus Energy who took part last winter slashed their bills by up to £40.

The National Grid ESO (electricity system operator) said there will be at least 12 hour-long tests for the service including six within the first two months.

The group expects the service will mostly be used on weekdays evenings. A household will need a smart meter to use the service.

A person can sign up throguh their supplier if they are taking part in the scheme. The customer will need to have a smart meter that can take half-hourly readings.

They will also need to give their consent for their readings to be used for the service, and will need to opt in to receive messages of when demand flexibility service event is coming up.

Jake Rigg, corporate affairs director at 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. 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.”

When the service was used for the first time this year on a Monday and Tuesday, data from Octopus Energy, OVO and EDF indicated enough electricity was saved to power 654,000 homes for an hour.

Millions of Britons will soon see their energy bills fall as the Ofgem price cap is set to fall from October.

A typical dual fuel household paying by direct debit will see their bills fall from £2,074 a year to £1,923 a year.

Ben Gallizzi, energy expert at, warned consumers to be aware the cap applies to the unit price of energy and does not limit how much a household pays.

He said: “Half of consumers wrongly believe the cap is the maximum amount you can pay for your yearly energy bill.

“However, this is not a cap on bills and usage varies by household – the more you use, the more you pay.”

Richard Neudegg, director of regulation at, warned consumers their bills will likely go up again in January.

He explained: “Rates for the average home will be seven percent lower from October to December, but energy prices remain volatile and are predicted to rise again in January.

“Despite lower unit rates, energy use will be higher, so the average household may only save around £47 next quarter compared to current rates.

“When we also consider that there is no universal Government bill support this winter, the average household will actually be paying more than they were over the same period last year.”

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