Families will be paid to cut back their electricity usage during busy times of the day under an innovative new scheme being piloted by Octopus Energy.
From Friday, all the company's customers who have a smart meter will be invited to join the trial, which will mean they pay less if they manage to cut their normal usage at prescribed two-hour slots during the day.
The main purpose of the pilot is to reduce pressure on the National Grid by spreading usage more evenly throughout the day, but it will also help households to cut their bills during the energy crisis.
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Around 1.4 million Octopus customers have smart meters, and the supplier expects around 10,000 of those to sign up to the trial, which only runs until the end of March.
Those who opt in will be told about their two-hour window by 4pm the day before it is scheduled, so they can choose in advance whether to take part or not the next day.
Households could be asked to delay a laundry cycle or a dishwasher load when demand on the power grid typically climbs, such as between 9am and 11am and again between 4.30pm and 6.30pm.
The supplier will also set personalised electricity reduction targets for each customer within certain two-hour windows, typically between 40% and 60% of their average usage during these periods, and if they hit the target, the remaining electricity used during the two-hour slot will be free.
The two-hour periods are expected to be between 12-2am, 9-11am and 4.30-6.30pm – typically the hours when we use the most energy.
However, only one of these time slots will be offered within a 24-hour period, and Octopus says it only expects between five and 10 two-hour slots to be available over the course of the trial.
Octopus Energy is one of three energy suppliers who have said they will support so-called 'surge pricing' for energy bills.
Scottish Power and EDF are also in support of the scheme, which uses smart meters to charge you more to watch TV or make a cup of tea in the morning and evening when demand is high - and less when it is quieter in the middle of the day or late in the evening.
The three firms, which have 11 million customers in total, said that surge pricing will lead to savings for customers, a view that is shared by energy regulator Ofgem, according to Telegraph, although there is no suggestion that customers will be forced to adopt surge pricing.
A Scottish Power spokesman said: “Time of use tariffs that are updated on a half-hourly basis will give consumers a real opportunity to save money on their energy bills, particularly for EV drivers charging from home.”
EDF said: “We already have a number of simple Time of Use tariffs available, which enable customers to enjoy lower prices at night-time, when energy is less in demand and therefore cheaper, including a tariff designed to help EV charging at a cheaper rate.”
Greg Jackson, chief executive of Octopus Energy, said: “Octopus has been offering these tariffs for years and they are unbelievably popular with those who want them - but it also allows us to be cheaper for everyone else.”
