National Grid is to increase the amount it pays households for using electricity at off-peak times, according to reports. The financial incentive for those who move their power usage away from peak time is set to rise to £3 per kilowatt hour instead of 52p.
It aims to encourage households to use appliances such as washing machines late at night. This could represent a saving of £100 over this winter.
National Grid has warned that there could be blackouts this winter if gas power plants are not able to keep running due to the energy crisis. The electricity systems operator said it is still unlikely but winter could see the first planned blackouts, which the grid calls rota load shedding, since the 1970s.
Writing for the Guardian, Fintan Slye, the director of National Grid ESO, said on Thursday: “Businesses and homes can become virtual power plants and, crucially, get paid like one too. For a consumer that could mean a typical household could save approximately £100 and, for industrial and commercial businesses with larger energy usage, they could potentially save multiples of this."
Energy firms Octopus and E.On had said the 52p payment to incentivise customers to sign up was too low, the BBC reports. The scheme is intended to ease pressure on UK power grids over the winter months.
Most demand on power happens during peak hours of between around 4pm and 7pm when people get home from work, put the kettle on, switch on their ovens and sit down to watch TV.
The new system to pay people if they change the time that they use energy is expected to start in November. However it will only be available to homes with smart meters installed - around 14 million households in the UK.
Mr Slye said people should contact their energy supplier if they want to take part or find out more about the amount they will be paid.
