You can get PAID to cut back on energy use at peak times – here’s how
YOU could get paid for cooking dinner later or putting your washing on earlier as part of a new trial.
A pilot scheme encouraging people to reduce their electricity use at the busiest times will launch this week, to see how supply and demand can be better balanced across the country's power networks.
Up to 1.4million Octopus Energy customers with smart meters are being offered cash to reduce use during peak times.
The scheme with National Grid will run for two months from this Friday (February 11).
Homes will need to reduce their energy use by a certain amount between certain hours including 9-11 in the morning and 4.30-6.30 in the evening.
The scheme is designed to see how encouraging people to use less energy during the busiest times can smooth out usage across the power grid.
The National Grid manages energy supplies to UK homes and has previously warned that energy supplies are tighter this winter, when demand is higher.
Better managing supply and demand can save money and help the environment.
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And customers involved in the pilot scheme will get cash back from reducing their energy too.
Isabelle Haigh, head of National Control at National Grid ESO, said: “System flexibility is vital to help manage and reduce peak electricity demand and keep Britain’s electricity flowing securely.
“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.”
If successful, it could see more households paid to use less energy at peak times.
This would also benefit all billpayers, as the costs of running the network are shared among everyone and efforts to reduce that would be passed on to them too.
Several suppliers offer Economy 7 tariffs already, which have cheaper pricing in the night compared to the day. We spoke to one man who saves money by washing his clothes at night on one of these.
Some also have tariffs that will pay you if you generate your own renewable energy and it goes back to the grid.
Octopus offers a tariff already that is based on the wholesale price of electricity, which changes every 30 minutes.
How can I get paid to reduce my energy usage?
All Octopus Energy customers with a smart meter will be invited to take part in the trial via email.
That's around 1.4million households, but Octopus said it expects around 100,000 to take part.
Those who take part will be told by 4pm about a two-hour window for the next day, during which they should use less electricity.
They will be given a target for their energy use during the window, and if they reach it they will be paid.
As they have smart meters they will be able to see what they are using and make adjustments as needed.
This could mean putting their washing on at a different time of day, or cooking their dinner later in the evening.
You don't have to take part each time, you can decide the day before when you're told about the window.
There's no deadline for joining the trial but it will end on March 31.
The target will be tailored to each home depending on how much energy they currently use and will be around 40% to 60% less.
Households who hit the target will be rewarded by the getting their usage for free during those two hours.
This will be worth up to 35p for every kilowatt-hour, but the exact amount will depend on the tariff you're on.
Octopus expects to have five to 10 of these windows per customer over the two months of the trial.
The exact amount will also depend on how much energy you use in that time.
The total would amount is unlikely to be anymore than a £10 for those with the highest usage taking part in every window, the trial could help reduce bills for everyone in the long run.
It comes as bills are rocketing in price for millions of billpayers.
Wholesale gas prices have shot up globally and households in the UK face paying hundreds more from April.
The price cap which limits how much energy companies can charge per unit for electricity and gas is going up.
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It means the average dual fuel bill will rise from £1,277 to £1,971 a year from April 1 - an extra £693.
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