People with smart meters could be paid to use some appliances at off-peak times this winter. Under plans consumers would be rewarded for changing the time they carry out use the dishwasher or tumble dryer - two high domestic energy devices.
The National Grid ESO (electricity system operator) plans, first revealed by The Sunday Times, could mean people get as much as £6 per kWh saved, which would add up to hundreds of pounds a year. The plans were set out to major suppliers, Ofgem and 100 other interested groups in a webinar on Thursday.
The grid is to apply to Ofgem, the regulator, for approval and hopes to open the scheme by late October. A Whitehall source suggested ministers would probably look favourably on the plan.
Read more: Criminal barristers vote to go on all-out strike in Wales and England
A pilot version of the scheme was successfully tested in February and March when 105,000 customers with Octopus Energy were asked to turn down their appliances for two hours on eight different occasions. Those who opted in were notified by email, text or app to cut their power consumption the following day. Using the household’s average consumption over the previous four weeks as a baseline, Octopus rewarded those who had dropped by 30 to 40% with a modest payment of 22.7p for every kWh saved, far less than is now being proposed. The biggest potential for savings was between 4.30pm and 6.30pm
Washing machines, dishwashers and tumble dryers account for 14% of a typical energy bill, the Energy Savings Trust says, with consumer electronics such as laptops, TVs and games consoles accounting for another 6%. More than half of all domestic meters are now smart meters. It is understood that National Grid is trying to work out how to ensure that those without smart meters could be seen to benefit.
A separate scheme would see owners of electric cars allowed to sell surplus power from the battery of their parked vehicle to the National Grid. As most cars sit idle for all but an hour a day, and the charge not needed for driving, the energy can be used for keeping the lights on at home and other domestic uses — and can now also be sent back to the grid. It is possible to pre-programme the car to charge from the grid when electricity is cheapest.
Earlier this month it was reported that the government was making worst-case contingency plans for organised blackouts for industry and households if cold weather coincides with gas shortages. Some experts have suggested there is a one in ten chance of blackouts. Countries across Europe are preparing plans to conserve energy due to the war in Ukraine.
People are facing a rise in energy prices. The energy price cap is forecast to rise from £1,971 to more than £3,500 in October and £4,200 in January. The next price cap rise is due to be announced by Ofgem on Friday, August 26.
Read next:
- Welsh athlete Ben Gregory in a coma after suffering fractured skull and neck in bike crash
- '10 things I learned returning to the Valleys after a decade away'
- Shane Williams identifies solution to Welsh rugby's 'unholy mess'
- The coffee shop serving legendary home-made cakes next to stunning cliff walks that everyone goes to
- The Welsh pals worth £40m each conquering the world with their vodka brand
