Households will be paid to turn on their appliances at quieter hours of the day under a new trial to reduce pressure on the National Grid and help lower household bills during an energy crisis.
From Friday, all 1.4million Octopus Energy customers with a smart meter will be invited to join a scheme that will mean they pay less if they cut their normal electricity consumption at certain two-hour periods during the day.
The pilot scheme hopes to spread out energy usage across peak and off peak times to reduce the pressure on the electricity grid as the UK ditches reliable but dirty fossil fuel plants.
Households could be asked to delay a laundry cycle or a dishwasher load when demand on the power grid typically climbs, such as between 9am and 11am and again between 4.30pm and 6.30pm.
If they meet their targets they could earn up to 35p for every kilowatt-hour of electricity saved.
Those in the trial will be told about their two-hour window by 4pm the day before it is scheduled, so they can choose in advance whether to opt in or not.
Octopus expects about 100,000 homes to sign up for the experiment, which runs until the end of March.
Under it, the supplier will set personalised electricity reduction targets for each customer within certain two-hour windows, typically between 40% and 60% of their average usage during these periods.
If they hit it, Octopus will offer free electricity for the remaining electricity used during the two-hour slot.
The trial would be a welcome opportunity for eligible households amid a bill crisis that will see energy tariffs soar by almost £700 from April under a revised cap.
How will it work?
It won't apply every day, but if an event is taking place, you'll be told about your time-slot and your electricity reduction target by around 4pm the day before.
You'll need to slash your usage by this amount, compared to your normal average electricity use during the set period. If you're successful, any electricity you do use during the period will be free – Octopus will apply credit to your bill to cover this.
Octopus has said it will email eligible customers over the coming days, inviting them to take part in the trial.
The two hour periods are expected to be between 12-2am, 9-11am and 4.30-6.30pm – typically the hours when we use the most energy.
However, only one of these time slots will be offered within a 24-hour period, and Octopus says it only expects between five and 10 two-hour slots to be available over the course of the trial.
Greg Jackson, founder of Octopus Energy Group, said: "UK households are currently suffering from huge energy bill increases caused by the global gas crisis. We speak to 30,000 customers a day and know first-hand how hard the situation is for many in this country.
"Octopus Energy has pioneered energy trials that put consumers in the driver’s seat, allowing them to save money when energy is cheaper and greener. We are glad that National Grid ESO have now joined us in our efforts to build a smart grid that puts money back into peoples’ pockets and drives the green energy revolution - and this trial is an incredibly important step to make it a reality."
Isabelle Haigh, head of National Control at 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."
James Eddison, co-founder of Octopus Energy Group, added: "It's a tremendous opportunity to unlock flexibility at an unprecedented scale."
