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Up to 1.4 million families in the UK have been offered to try a scheme that’s aimed at preventing blackouts as the country prepares for a green revolution. Commencing on Friday, the National Grid has launched a scheme that will offer to pay households if they are able to cut their power use by between 40 percent and 60 percent below normal levels during a set two-hour period.
The move is intended to be an experimental scheme that could soon pave the way for a major overhaul of the country’s billing system as the UK transitions from dirty fossil fuels.
For families that are participating in this scheme, they may have to postpone a laundry cycle or a dishwasher load at certain times of the day when demand on the UK’s power grid is typically high.
These times include between 9am and 11am and again between 4.30pm and 6.30pm.
If they can reduce their electricity to their required targets, households could earn up to 35p for every kilowatt-hour of electricity saved.
The move is intended to be an experimental scheme that could soon pave the way for a major overhaul of the country’s billing system as the UK transitions from dirty fossil fuels.
During peak times, families may avoid charging their cars and using too many appliances, to reduce the pressure on the electricity grid.
For families across the UK, reductions in their energy bills through this scheme could provide a lifeline as the global energy crisis caused the energy price cap to rise by almost £700 per year as worldwide supply shortages push up the cost of wholesale gas.
Many energy suppliers have gone bankrupt over the past year, owing to the wholesale gas price rises which have seen companies go out of business.
This has left over two million customers dependent on the safety net provided by the market regulator, Ofgem, in order to maintain their gas supplies and protect their credit balances while they were moved to a new supplier.
The results from this scheme will help the National Grid Electricity System Operator (ESO), which manages Britain’s electricity supply and demand, design and adapt to an electrical system as the UK transitions to renewable energy.
Isabelle Haigh, head of National Control at ESO, said: “System flexibility is vital to help manage and reduce peak electricity demand and keep Britain’s electricity flowing securely.
“This trial will provide valuable insight into how suppliers may be able to utilise domestic flexibility to help reduce stress on the system during high demand, lower balancing costs and deliver consumer benefits.”
Experts predict a soaring demand for electricity as more people purchase electric cars and replace their gas-fired boilers for electric heat pumps, as part of the Government’s push to cut carbon emissions.
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In order to bring the UK to net zero, the country needs to invest heavily in renewable sources of energy like wind and solar, which can be intermittent.
To tackle this issue, the electricity grid requires greater management to ensure that the supply always matches the demand and no blackouts take place.
Officials believe that this scheme will help incentivise people to change their habits, including charging their vehicles overnight instead of when they get home, or running appliances when they are at work rather than in the evening.
This scheme will be offered to 1.4 million customers of 1.4m customers of Octopus Energy who have smart meters.
Speaking to Express.co.uk, Greg Jackson, the CEO of Octopus Energy stated that the UK needs to build renewable energy capabilities at a breakneck pace to prevent another energy crisis next winter.
He said: “If we were building renewable generation with the same urgency now, as we did during the pandemic, we could be enjoying cheaper electricity next winter.”
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