UK Households and Businesses to be Paid for Reducing Energy Usage


Winter Outlook Report Predicts Adequate Power Supply

The National Grid's Winter Outlook report indicates that the worst of the energy crisis is expected to be over. The report states that the country will have "adequate" power supply during the cold months, although risks of shortages cannot be completely discounted due to the uncertainty caused by Russia's invasion of Ukraine.

Past Concerns of Blackouts

Last year, there were concerns that the UK could experience rolling blackouts as a result of Russia's war in Ukraine. However, these concerns were mitigated through energy markets and the Grid's plan to pay consumers to reduce their usage during peak times.

How the Demand Flexibility Service Works

The Demand Flexibility Service (DFS), set up by the National Grid, helps prevent blackouts during high-demand periods or when energy supplies are low. Under this service, households that use less electricity than usual during allotted hours are paid for their savings. Energy-guzzling appliances, such as tumble dryers, should be turned off to maximize savings.

Potential Savings and Eligibility

Households can earn varying amounts based on their energy provider's criteria. For example, putting on a dishwasher or charging an electric car during off-peak hours could result in payments. The Grid has informed regulator Ofgem that it would pay £3 for every MegaWatt Hour saved.

How to Participate in the Demand Flexibility Service

Currently, only households with smart meters can participate in the scheme, which is facilitated by energy suppliers. Interested individuals should sign up directly with their supplier to join the service. Each energy provider has its own eligibility criteria and the start date of the next scheme is not yet known. Last year, not all energy firms offered the DFS.

Note: This article has been rewritten for a UK audience from an original source.

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