Millions of homes could soon be paid to use less electricity this winter

Under the proposals, families would be paid to shift the time they use energy-hungry appliances like the oven and washing machine – shifting when they cook or clean

Smart meter customers could soon be paid to reduce their energy consumption during peak times
Smart meter customers could soon be paid to reduce their energy consumption during peak times

Millions of homes with smart meters could soon be paid to use less energy at peak times this winter.

The new system would be rolled out by the National Grid Electricity System Operator (ESO) following a successful trial with Octopus Energy customers.

Under the proposals, families would be paid to shift the time they use energy-hungry appliances like the oven and washing machine – shifting when they cook or clean.

Households typically pay 28.34p for every kilowatt-hour of electricity they use, according to The Times, but could instead pay up to £6 for every kilowatt-hour they avoid at peak times.

In the paper’s proposals, National Grid ESO said that rolling out the program could be cheaper than paying for fossil-fuel power plants to generate more electricity – and claims it could also help reduce the risk of blackouts.

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Households would have to be paid for smart meters to reduce their consumption through the system. Smart meters are self-reading gas and electricity meters that display your energy use in pounds and pence.

National Grid ESO tested the system earlier this year with 100,000 Octopus Energy smart meter customers who were asked to reduce their energy consumption between 4:30 p.m. and 6:30 p.m.

According to Octopus, the average household saved 23p per two hours, although some saved as much as £4.35.

National Grid SEO is now said to have written to other utilities to assess their interest in the program.

The cost of the proposed program would reportedly be added to household bills, but National Grid believes all households should benefit.

A spokeswoman for National Grid ESO told The Times, “Demand shifting has the potential to save consumers money, reduce carbon emissions and offer greater system flexibility.”

Energy bills are expected to rise again this year as households are already paying sky-high prices for gas and electricity.

The Ofgem energy price cap, which caps the tariffs a supplier can charge for each unit of gas and electricity they use, rose by 54% on April 1st.

For those on standard plans paying by direct debit, the price cap has been increased by £693 from £1,277 to £1,971.

Prepay customers saw a bigger jump as their price cap rose by £708 from £1,309 to £2,017.

Ofgem’s chief warned last month that the price cap could rise again by hundreds more pounds when it is reviewed in October.

Ofgem Chief Executive Jonathan Brearley told the Business, Energy and Industrial Strategy Committee that it would be “in the region of £2,800” in October.

Cornwall Insights experts predict the price cap will rise to £2,980 in October before hitting £3,000 in January.

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https://www.mirror.co.uk/money/millions-households-could-soon-paid-27334536 Millions of homes could soon be paid to use less electricity this winter

Fry Electronics Team

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