National Grid PLC has described how its “Demand Flexibility Service” will operate once it receives Ofgem approval. This is part of its attempt to avoid speculation blackouts.
National Grid ESO hopes that the scheme will offset peak electricity demand, reducing the need to prevent blackouts. This is a warning issued in the wake of severe energy supply problems in the next months.
Participating in the program could result in savings of up to £100 for typical households. Each supplier will decide how customers can save or claim their money.
National Grid ESO stated that industrial and commercial businesses with higher energy consumption could save multiples of these.
Participants will be notified 24 hours before the test day. An initial 12 tests are scheduled between November and March 2023. They will then be asked to reduce peak-time electricity usage during a one-hour slot, most likely between 16:00-19.00.
National Grid will pay £3,000 to participate suppliers for each megawatt-hour that is not used in tests. This includes Octopus energy, which has already announced its participation.
Fintan Slye is the CEO of National Grid ESO. He stated: “We are thrilled that Ofgem has approved our Demand Flexibility Service use this winter.
“It will mitigate the potential risk that the ESO has outlined during its Winter Outlook. It will also allow consumers to see a financial benefit for reducing their peak-time electricity consumption.”
Jake Rigg is the National Grid ESO corporate affairs Director. He said that it was not difficult or big to do. Just remember to do it twelve times this winter to get your money back. This comes at a time when everyone is really struggling with their energy bills and living costs.
The scheme is not available to everyone. In fact, less than half (14mln) of UK households will need smart meters to participate.
National Grid previously warned of three-hour power cuts in the UK if there are supply shortages this winter. The government has reportedly tested plans to deal with a one-week-long worst-case scenario.
