Energy giant British Gas has confirmed that it will pay customers to use energy-guzzling appliances outside peak times. The new scheme will be launched in time for this winter.
After warnings from National Grid of potential blackouts in the coming months, as well as rocketing prices for energy, power usage is at the forefront of most households minds. The new scheme could mean money back for using appliances like dishwashers, washing machines and cookers at night.
Customers will have to opt into the scheme, according to a report in the Mirror, and it is likely you’ll be asked to reduce your electricity use by around 30% between 4pm and 7pm. However, final details have yet to been published.
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Exact details of how the scheme will work or how much customers will be able to earn for reducing their electricity use, haven't been released by British Gas yet, however, website MoneySavingExpert says its trial scheme, which is being run together with the National Grid Electricity System Operator (ESO), will launch “later this year”.
The ESO confirmed it is encouraging energy suppliers to sign up to a new scheme this winter. The idea of using less electricity when demand is normally particularly high is that it should help ease the burden on power grids and prevent blackouts. The ESO said those who avoid using appliances when demand is high will get back £3 per kilowatt hour - up from the 52p previously announced.
Octopus Energy, which has rolled out various 'keeping warm' ideas, piloted the ESO scheme earlier this year. It was the first supplier to officially sign up to the new initiative and says it expects to pay customers £4 on average during peak times between November and March through its Saving Sessions service. Octopus says this will add up to £100 over winter, if a customer cuts their electricity use by 1kWh once or twice a week, up to around 25 times in total.
A similar scheme has also been announced by OVO Energy - but this is separate to the run being one by the ESO. OVO customers who cut their energy use by 12.5% between 4pm and 7pm will get £20 each month. The new Power Move trial will run from November to March meaning OVO households can also get up to £100.
The ESO first published details about the new "Demand Flexibility Service" in a report last month. It is down to each energy supplier to decide whether they sign up - if they do, then their customers will be encouraged to use less energy during peak times. You'll need a smart meter to take part in the scheme.
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