A new bill tariff has been proposed that could see customers paying more for using electricity when demand is higher.
This type of billing is known as 'surge pricing' and according to the Telegraph, three major energy companies are backing plans for it to be introduced if you use a smart meter.
Scottish Power, EDF and Octopus Energy are supporting 'surge pricing' for energy bills. The scheme that uses smart meters charges you more to watch TV or make a cup of tea at certain times when demand is high, for example in the morning.
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But on the flip side, when demand is lower, like in the middle of the day, prices are lower. Homes could save money by using their washing machine or dishwasher last thing at night and charging electric cars over night.
This would mean that the amount you pay for electricity will be changed every 30 minutes and the the Government is reported to be planning to hand Ofgem the power to make 30-minute meter readings standard next month.
A Scottish Power spokesman said: “Time of use tariffs that are updated on a half-hourly basis will give consumers a real opportunity to save money on their energy bills, particularly for EV drivers charging from home.”
EDF said: “We already have a number of simple Time of Use tariffs available, which enable customers to enjoy lower prices at night-time, when energy is less in demand and therefore cheaper, including a tariff designed to help EV charging at a cheaper rate.”
Energy firms and regulator Ofgem said surge pricing will lead to savings for customers.
Greg Jackson, chief executive of Octopus Energy, said: “Octopus has been offering these tariffs for years and they are unbelievably popular with those who want them - but it also allows us to be cheaper for everyone else.”
Currently, people with some smart meters can choose if they want to have their meters read every 30 minutes and there is no suggestion that energy firms will force customers to take on this new pricing.
Instead it will be offered as a tariff option. This type of pricing is known as 'Time of Use' tariffs.
