The National Grid has announced that, in a bid to ensure uninterrupted power across Britain this winter, it will offer compensation to households that reduce their electricity consumption.
Between November and March, both households and businesses are encouraged to enrol in the demand flexibility service. This service will prompt them to decrease their power usage when the grid is under significant strain.
Participants can expect reductions in their electricity bills. Preliminary trials scheduled for November and December have set compensation rates up to £3 per kilowatt hour, as stated by the National Grid ESO (electricity system operator).
To put it in perspective, the Energy Saving Trust mentions that washing a single laundry load consumes roughly 0.5 kilowatt hours, while bringing a full kettle to boil utilizes about 0.2-kilowatt hours.
Last year, Octopus Energy had the highest participation rate among energy suppliers, with 700,000 customers engaged. The most proactive households, on average, reduced their winter bills by £40 through their participation.
The National Grid has announced plans for a minimum of 12 one-hour trials for the demand flexibility service. The initial six trials will be conducted within the first two months. These tests are designed to boost involvement and to ensure the system’s efficient operation.
These trials will be in addition to any real-time calls for energy conservation. Prior to each energy-saving session, participants will be informed through text, email, or other communication methods provided by their energy supplier.
The peak usage of the demand flexibility service is anticipated during weekday evenings.
Participation is limited to households equipped with smart meters that can transmit electricity readings every 30 minutes.
In the previous year, the service was activated 22 times, with 20 being tests. A whopping 1.6 million homes and businesses participated.
Collectively, they conserved 3,300 megawatt hours of electricity – equivalent to the energy needed to power close to 10 million households.
Jake Rigg from National Grid ESO announced the comeback of the Demand Flexibility Service for the upcoming winter season, encouraging both major and minor consumers to participate.
“The ESO aims to collaborate with the industry to further the achievements of this innovative service. Last winter, the service highlighted the enthusiasm of consumers and businesses in actively contributing to our electricity equilibrium, earning savings for their proactive involvement.”
In the previous year, the service saw participation from 31 energy providers, 14 of which were for domestic consumers.
The Grid compensates these providers based on the savings they make. The distribution of these savings to the end customers is at the discretion of the individual providers, with varied approaches across the board.
For the first six evaluations scheduled for November and December, suppliers are assured up to £3 for every kilowatt-hour. However, subsequent pricing by the Grid remains undecided and will be influenced by the number of participating households and businesses.
Despite some households last year resorting to using candles by turning off their lights, the Grid emphasized that there’s no expectation for consumers to forsake electricity usage.
Savings calculations typically contrast a household’s electricity consumption during a specific timeframe with their usual consumption during the same hours.
The Grid’s official website mentions, “Due to the minimal electricity consumption of efficient light bulbs and small devices like modern TVs, altering their usage during an ‘event’ may not be financially beneficial.”
Octopus Energy’s Flexibility Head, Alex Schoch, expressed positivity about the reintroduction of the demand flexibility service. He observed, “The past winter marked significant progress towards a smarter, eco-friendly grid. It was evident that households can play a crucial role in moving away from non-renewable energy sources while also making a profit.”
He added, “Instead of allocating funds to pricey coal plants, it’s more economical to reward our customers directly.
