Subtotal:
£4,124.24 (incl. VAT)
As part of a groundbreaking program to encourage people to reduce their energy use during peak hours, National Grid plans to give away more than ยฃ3 million to individuals and businesses.
Between 4.30 and 6 o’clock on Tuesday, the electrical system operator conducted its “demand flexibility service,” which encourages British families to use less power during a predetermined time.
To help ease the burden on the grid brought on by the cold weather, the service was first actually used for the first time on Monday between 5 and 6 o’clock.
Octopus Energy tested the program early last year, and it was finally implemented this week. In November, it was extended to additional suppliers. More than 1 million consumers and businesses have registered.
An average household saved roughly half a kilowatt hour during the testing, which will be worth about ยฃ2 on Tuesday and result in a cost to National Grid of ยฃ2 million. Participants will get those funds, with suppliers keeping a portion to pay their expenses.
For the service on Monday and Tuesday, National Grid anticipates paying suppliers little over ยฃ3 million in total, with roughly ยฃ850,000 on the first day and ยฃ2.1 million for the longer session on Tuesday.
According to Octopus, 400,000 clients took part in the session on Monday and received a reward of ยฃ3.37 for each kilowatt hour of electricity they didn’t use. Following rising tariffs from National Grid on Tuesday, Octopus will offer ยฃ4 per kilowatt hour.
To take part, consumers must have a smart meter and be registered for the program. Consumers must choose to participate after receiving around 24 hours’ notice from their supplier of a savings session.
As a cold snap tempts Britons who have been putting their heating off due to high energy costs to turn it on, National Grid is striving to strike a balance between supply and demand.
On Monday night, the grid operator announced that it had requested that three coal units that are currently on standby this winter warm up in preparation for possible operation on Tuesday.
The three unitsโat EDF’s West Burton plant in Nottinghamshire and Drax in North Yorkshireโwere also ready on Sunday to assist with Monday’s supplies before being stood down.
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