Six energy companies have signed up to pay customers for cutting back on their electricity usage when the National Grid is under strain.
British Gas, E.on, EDF, Octopus, Ovo and Shell Energy have all revealed plans to launch similar schemes this winter as part of a broader initiative from the National Grid Electricity System Operator (ESO), the body responsible for keeping homes and businesses powered. A seventh company - Utilita - has also revealed its own scheme, separate from the ESO, which works in a similar way.
The companies are currently offering up to £100 in discounts for off-peak power use, but many homes won't be able to take advantage of the offer, either because they are customers of one of the 17 energy companies not taking part, or their supplier is limiting how many people can sign up.
Read more: British Gas joins Octopus in paying customers to use less electricity during peak hours
A new app called Equiwatt has been launched to target these families, who will get vouchers for retailers such as John Lewis and Amazon when they sign up to save energy. The app connects to smart meters and smart plugs, alerting consumers to reduce their energy use.
The Equiwatt app links to smart technologies in your home, like smart meters, smart plugs or smart chargers. It sends notifications for you to take part in energy saving events at peak times by turning off or avoiding the use of appliances – anything from fridge freezers and washing machines to electric vehicle (EV) charging. These events, known as ‘equivents’ last for up to one hour.
You'll be rewarded for the energy and CO2 savings you make with points that can be redeemed for vouchers on brands such as Amazon and John Lewis. Customers can earn up to 400 points in an hour for cutting down their energy use, with one point equalling 1p. Equiwatt's scheme has pledged to give households over 300 opportunities to save peak energy all year round, not just for winter.
Johnson Fernandes, CEO of Equiwatt said: “National Grid’s demand flexibility service is a great initiative that offers a way for consumers to access incentives for saving energy at peak times of demand, while also helping to reduce strain on the grid. But many consumers will miss out on those energy savings and the financial rewards that come with them, as they either are not invited to a supplier scheme or don’t have a smart meter.
"We’re delighted that, through our app, we can offer a greater number of households the opportunity to reduce their energy usage and be rewarded financially this winter.”
Equiwatt customer Richard, of Killingworth, Northumberland, said: “I work as an author and speaker in the IT industry, and as a result, our home is packed to the gills with smart technology! I first came across Equiwatt at Newcastle Startup Week, and the idea behind reducing the pressure on the National Grid really interested me. We love how Equiwatt enables us to help the environment and be rewarded for doing so, too.
"I'd suggest any new Equiwatt user starts small and builds. For instance, we started with a single smart plug, plugged into our fridge/freezer. We quickly earned enough points from equivents to order a second smart plug which we used on our smaller freezer. Equiwatt enables households to use easy-to-use smart technology to reduce their load on the National Grid, save money and earn rewards while doing so."
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