Households will be able to earn money by changing the time they use their power appliances. Under an new scheme those who use their washing machines or charge their electric cars during off-peak hours will be given money back on their bills.
The announcement comes as the National Grid Electricity System Operator (ESO) warned people could be facing planned three-hour blackouts if gas supplies run short this winter. While it says it does not expect insufficient supplies it is setting up contingency plans in case it does happen. reports the Mirror.
To help avoid blackouts, families will be being encouraged to sign up to a new a scheme which will give them money back on their bills to use appliances outside of high demand times. For example, this could be using your washing machine or dishwasher at unsociable hours, or charging your electric car outside peak times.
One operator has already announced its scheme. Ovo say people can be rewarded up to £100 for shifting their energy to a "greener time of the day".
Under the national grid announced service people with a smart energy meter can opt-in. Households would receive a text message asking them to only use electricity when there is less demand - typically after 7pm.
In exchange, they would receive a payment. Larger businesses will be paid for reducing demand, for example by shifting their times of energy use or switching to batteries or generators in peak times.
The "demand flexibility service" will run from November to March. It is expected to be implemented at least 12 times to ensure a benefit for signatories. It is hoped it will deliver 2GW of power savings to balance supply and demand.
The ESO's director of corporate affairs, Jake Rigg, said: "The demand flexibility service is a first of its kind and a smart way for signed up consumers in homes and businesses to save money and back Britain. If you put your washing machine or other electrical appliances on at night instead of the peak in the early evening, you can get some money back when we all need it.
"The service is due to launch in November, so watch out for further details soon. This really is a window into the future where a flexible energy system will be cleaner and lower cost to alternatives."
Ovo Energy was quick off the mark with its announcement on Thursday that its customers could get up to £100 back by shifting their energy usage to off-peak times. Under its Power Move scheme the company is looking for participants to cut their average consumption between 4-7pm to less than 12.5%.
Ovo said that for the average household, that could be the equivalent of moving three loads of washing per week from peak time to a greener time of day. The energy supplier will pay the average customer £20 each month this is achieved.
Ovo Energy's trial runs from November 1, 2022 to March 31, 2023 with further details on how to sign up for the scheme to follow. It says it is part of its plan to decarbonise homes and save consumers money.
However, if the proposed measures fail and demand for electricity exceeded supply, households and businesses could see their power switched off for up to three hours at a time. Officials stressed that customers would be told in advance. Vital infrastructure such as hospitals would be excluded from the cuts.
The National Grid today said there are two gigawatts of coal-fired power plants on stand-by, if needed to meet demand. This deal has been struck between three power companies - EDF, Drax and Uniper - in case of a loss of imports from France, Belgium and the Netherlands.
The National Grid admitted that households face a "challenging" winter following the Russian invasion of Ukraine, which has contributed to soaring energy prices. The crisis has also led to gas flows from Russia to Europe having been all but cut off.
Britain is far less reliant on Russian gas compared to mainland Europe - but there could still be knock-on effects for families. The ESO base case assumes that when Britain needs more electricity, cables that link the country to its European neighbours will be enough to keep the lights on. It does not assume that there is any "material reduction of consumer demand due to high energy prices".
Responding to the winter outlook, a Government spokesperson said: "The UK has a secure and diverse energy system. We are confident in our plans to protect households and businesses in the full range of scenarios this winter, in light of Russia's illegal war in Ukraine.
"To strengthen this position further, we have put plans in place to secure supply and National Grid, working alongside energy suppliers and Ofgem, will launch a voluntary service to reward users who reduce demand at peak times."
The spokesperson said Britain is not dependent on Russian energy imports. They added that there is access to North Sea gas reserves, imports from Norway, and via ports which can handle liquefied natural gas, as well as clean energy sources.
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