British households could soon be paid to use less electricity during peak demand periods under a new trial from National Grid and utility company Octopus Energy to ensure a steady supply of power as the UK transitions to net zero.
Octopus’s 1.4 million smart-meter customers will receive discounts on their bills if they reduce power consumption below usual levels during two-hour windows at key periods this winter.
The trial that starts next week and runs until March 31 will assess whether managing energy demand from homes can help balance the power grid and reduce costs, as Britain attempts to achieve net-zero carbon emissions by 2050.
“This trial will provide valuable insight into how suppliers may be able to utilise domestic flexibility to help reduce stress on the system during high demand, lower balancing costs and deliver consumer benefits,” said Isabelle Haigh, head of national control at National Grid, which operates Britain’s electricity system.
Power demand is set to double by 2050 as sectors such as transportation, industry and home heating electrify to comply with the government’s green ambitions.
National Grid needs to find ways to balance out supply and demand and make sure that domestic needs are not concentrated into an evening super-peak when everyone finishes work, plugs in their electric vehicle and starts using appliances at home.
Under the trial, customers will be able to earn money by cutting their power use by 40 to 60 per cent below standard levels during the peak two-hour period, such as 9am and 11am in the morning or 4.40pm to 6.30pm in the evening.
Ways to do this include delaying a dishwasher or washing machine cycle until after the peak period is over.
Households that meet their energy reduction targets could earn up to £0.35 for every kilowatt-hour of electricity they save.
Those taking part in the trial will be informed about the next day’s two-hour trial window the day before it is scheduled so that they can decide whether to opt in.
Octopus Energy is expecting about 100,000 homes to sign up for the trial, which could come as a welcome relief for some consumers after the UK energy regulator Ofgem raised the price cap — the maximum suppliers are allowed to charge in a year — by £693, which will hit consumer pockets from April.
The trial will also help the National Grid as it seeks to gather data to help it reach its goal of running a net zero carbon electricity grid by 2035.
James Eddison, co-founder and chief technology officer of Octopus Energy, said households can play a key role in boosting the efficiency of Britain’s energy system by “making the most of home-grown energy when it’s abundant”.
