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Daily Mirror
Daily Mirror
Business
Sam Barker

British Gas to pay households up to £100 to cut energy use at peak times

British Gas has signed up to a scheme that pays customers up to £100 for using more off-peak energy during the winter.

However, only 100,000 British Gas customers with smart meters will be able to take part in the trial.

A new scheme called the Demand Flexibility Service has been launched by an arm of the National Grid.

The idea is to avoid widespread blackouts by encouraging homes to use power outside peak times this winter - reducing pressure on the National Grid.

The Demand Flexibility Service has already been given approval by energy regulator Ofgem, and can run until March 31, 2023.

It had been tested already as part of a trial phase on November 15 and 22.

Now British Gas has joined up with a system called 'Peak Save'.

British Gas is the biggest supplier to join the Demand Flexibility Service (Getty Images)

British Gas is already emailing customers inviting them to take part.

When the National Grid unveils a window of time it wants to see lower energy use, British Gas will tell Peak Save customers by text message.

During that window, customers will get about £4 for every unit of electricity they save compared to their normal usage.

The scheme could potentially save customers as much as £100 over the course of the winter and will run between December 2022 and March 2023.

Chris O ‘Shea, chief executive of British Gas owner Centrica, said: "We are exploring how to make this scheme work best for our customers so that it fits in with their habits around the home. This approach to help manage residential electricity demand is likely to become a major feature of the market in years to come."

British Gas will set customers a 30 per cent reduction target and gave tips on how to hit it.

That could mean avoiding using power-hungry appliances - for example, the washing machine or tumble dryer - during a specified time.

Payments will be made as a bill credit within seven working days.

Customers do not have to take part in the 'turn-down' events unless they want to.

British Gas will contact customers by text no later than 6pm the day before an event.

Customers will need to opt-in to an event no later than 12am.

Other energy suppliers signed up are Octopus Energy, E.On Next, Shell Energy and Vpower U.

OVO Energy has announced a similar scheme - but this is separate to the one being run by the ESO.

OVO customers who cut their energy use by 12.5 per cent between 4pm and 7pm will get £20 each month.

The new Power Move trial will run from November to March as well, meaning OVO households can also get up to £100.

What happens if I don't have a smart meter?

Many homes won’t be able to take advantage of the National Grid ’s energy scheme this winter because they don't have a smart meter.

Many energy companies are also limiting how many people can sign up.

However, hundreds of thousands of households can get £100 Amazon and John Lewis vouchers for using less energy at peak times this winter.

Households can earn rewards through the free Equiwatt app, which connects to smart meters and smart plugs, alerting consumers to reduce their energy use.

The Equiwatt app will link to smart technologies in your home, like smart meters, smart plugs or smart chargers.

Then, it sends notifications for you to take part in energy-saving events at peak times by turning off or avoiding the use of appliances – anything from fridge freezers to washing machines – and electric vehicle (EV) charging.

These events, known as ‘equivents’ last for up to one hour.

You'll be rewarded for the energy and CO2 savings you make with points that can be redeemed for vouchers on Amazon, John Lewis and other big brands.

Customers can earn up to 400 points in an hour, per event, for cutting down their energy use.

Equiwatt's scheme will give households over 300 opportunities to save peak energy all year round, not just for winter.

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