As part of National Grid’s attempts to prevent blackouts, households will receive reductions on their electricity bills if they reduce peak-time consumption on a few days this winter.
The network provider has released the program’s features, claiming that it may save consumers up to £100.
In the beginning, between November and March, there will be twelve “test” days to gauge client response.
However, only residences with smart meters will be permitted to participate.
In England, Scotland, and Wales, where the initiative is being tested, just 14 million, or less than half, of houses have a smart electricity meter fitted.
Participants will be notified 24 hours in advance of a “test” day where they will be requested to lower their peak-hour electricity consumption if possible during a National Grid-designated one-hour period, likely between 16:00 and 19:00.
This could be delaying the use of a tumble dryer or washing machine, or preparing dinner in the microwave as opposed to the oven.
During the test periods, National Grid will pay energy suppliers, who will be obliged to join up for the program to operate it for customers, £3 per kilowatt-hour.
Individual vendors will determine how much customers will receive and whether the money would be deducted from bills, credited to accounts, or made available for withdrawal.
National Grid is testing the concept, which it refers to as its “Demand Flexibility Service,” on a large scale for the first time to develop a system that can serve as an “insurance policy” if it has to reduce grid demand this winter.
National Grid hopes that the new program, in conjunction with other safeguards, will prevent power outages lasting up to three hours from occurring in homes if gas supplies run dangerously low.
The electrical network operator reported that the service had been approved by the UK’s energy regulator Ofgem, allowing power suppliers and providers to join up for the scheme and advertise it to customers.
It is believed that many of the largest energy companies in the United Kingdom intend to participate in the trial after being engaged in recent months on how it would operate.
The program is also available to businesses, which might alter production schedules or switch to batteries or generators during peak hours.
National Grid ESO’s director of corporate affairs, Jake Rigg, stated that by joining up, individuals could “support Britain” in addition to saving money and decreasing carbon emissions.
“It’s not a large or difficult thing to do, we just have to remember to do it 12 times this winter,” he told. “We’re all struggling with energy bills and the expense of living.”
“We can all do our part to shift demand away from the peak and ensure supply security throughout the winter.”
Octopus Energy has already declared participation. It ran a pilot program with 100,000 customers earlier this year, offering a significantly smaller discount to those who switched their energy consumption away from peak hours.
As the United Kingdom enters winter, it is anticipated that households would have the opportunity to reduce their energy consumption in 25 days, as opposed to the 12 days now planned.
In recent months, the energy markets have experienced “unprecedented turbulence and volatility,” according to National Grid.
Since Russia invaded Ukraine, gas lines from Russia to Europe have been hampered, leaving countries scrambling for alternate supply, which could have repercussions for Britain.
More than 40 percent of the nation’s electricity is generated by gas-fired power plants, which are primarily reliant on natural gas.
The United Kingdom also imports power from mainland Europe.
National Grid continues to believe there will be sufficient energy to provide the same amount of electricity to the United Kingdom as in recent winters.
It stated that its service aims to conserve two gigawatts of electricity, enough to power almost one million homes.
Additionally, the business has placed coal-fired power plants on standby in case they are necessary to increase energy production.
