National Grid plans to pay consumers to use less electricity during peak periods to reduce the risk of blackouts this winter, it turns out.
The grid operator is aiming for a plan that would allow homes with smart meters to choose how much energy to use when supplies run out.
As reported by The Times, initial proposals from the National Grid’s Electricity System Operator (ESO) called for households to pay up to £6 per kWh in the form of credit, rather than paying £28.34 per kWh. could.
The move comes as the government looks at ways to secure additional energy supplies this winter and limit consumer consumption.
Business Secretary Quasi Quarteng is hoping to broker a deal to extend the life of Britain’s last remaining coal-fired power stations over the winter after West Burton A comes online in Nottinghamshire.
Russia’s invasion of Ukraine has put further pressure on already strained energy supplies. Ministers are concerned the worst-case scenario could be a rolling blackout this winter for the UK.
National Grid’s plans could provide a cheaper, greener alternative to fossil fuels and reduce consumer bills.
Annual bills in the UK have reached £1,971 a year and are expected to reach £2,800 a year in October before hitting £3,000 in January.
National Grid’s proposals stem from an attempt in partnership with Octopus Energy. As part of the pilot, around 100,000 customers were told a day in advance to throttle their usage from 4:30pm to 6:30pm, when demand in the UK is at its peak.
Octopus said the average household saves 23p for every two-hour period, with some consumers saving up to £4.35.
Sources close to the plan said consumers have been consulting regularly to reduce their usage during the proposed period. There were concerns that National Grid would not be able to trust consumers who regularly accept offers.
National Grid asked other providers to rate how much customers could reduce their consumption during peak periods.
It is also hoped that this initiative can encourage households to adopt smart meters after adoption has stalled over the past decade.
The system is paid for by levying on domestic bills; However, the cost of the power plants to maintain or increase supply is considered high.
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An ESO spokesperson said: “Demand shifting has the potential to save consumers money, reduce carbon emissions and provide greater system flexibility, and today some form of demand management is being used to help balance the system.” already used.
“Innovations that increase consumer value and reduce CO2 emissions are always deployed as quickly as possible in a tested, safe and reliable manner.”
Greg Jackson, CEO of Octopus Energy said: “National Grid has traditionally paid huge sums of money to diesel generators during periods of high demand – or to pay big companies to stop using them.
“Opening it up to families who want to do that doesn’t mean it’s not just going to be for the big companies. And the more flexibility we have in the grid, the cheaper electricity will be for everyone – not just for the big companies. This is only for the participants.”
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