Octopus Energy has defended its new money-saving scheme that pays people not to use their electricity at certain times after some customers criticised it for being a 'waste of time'.
The scheme, launched by the National Grid, allows households to get money back if they reduce their electricity use during peak hours. It is designed to reduce the strain on the electricity grid, which could help to avoid blackouts over the winter.
But some customers who took part in the first saving session on Tuesday evening last week weren't impressed by the scheme, with one saying they spent an hour 'sitting in the dark' for a 'pretty crap financial saving'. Between 5pm and 6pm, participants were asked to cut their usage in order to earn 'OctoPoints', which can then be cashed in, used as energy account credit, exchanged for prizes or donated to other customers.
READ MORE: Martin Lewis is urging everyone to check their tax code immediately
MyLondon reports that customers were left 'miffed' at the money they made back. One person, who earned 12p over the hour, tweeted: "Given it’s based on average energy usage it just shows how little I use in general." Another told Octopus Energy that they wouldn't be participating again, explaining: "Like many others, I took part in #SavingSessions, sat in the dark with only the fridge on for the whole hour and saved 54p. Then did everything I would have done an hour earlier. I’m afraid the saving incentive is simply not worth the inconvenience."
Another person joining the session was told they had made it into the 'top 10% savings club' - but were left disappointed with how much they were rewarded for their efforts. They tweeted: "Bit miffed at the last @OctopusEnergy saving session, as I only earned £1.63 despite cutting down my usage by 97%."
The founder of the energy company has since hit back at the negative comments. Greg Jackson said small discounts will add up over time and compared the trial to Tesco's Clubcard scheme.
Octopus Energy claims that the average customer had slashed their electricity use by around 59 per cent during the session, and that the typical bill payer was paid “well over” £1 for the hour. The top 5 per cent of energy savers got £4.27 on average, it added.
Responding to disheartened customers, Mr Jackson admitted "it's not for everyone", but said that bargains "add up and make a real difference". He explained: "Whilst some saved 8p, or nothing - others saved £££. It's like Clubcard points. And it's far better than paying standby diesel generators, or in the worst case actual blackouts. It makes the system cheaper (and cleaner) for everyone."
Mr Jackson also retweeted a number of comments from people who had enjoyed the scheme, adding that the majority of feedback tweets were positive. Twitter user Dan said: "We earned £1.81 on the first session, equal to a day’s electricity usage for us, so big impact."
Similarly, Marc Addis told the founder: "I've taken part in one and got £2.37 as a reward, and I didn't sit in a dark room for hour as we have a 1 year old! All we did was change when we cooked, did washing or used the dishwasher."
Others said they enjoyed the scheme as it made them think about how they were spending their time. "We're doing it for the sheer fun at this rate the kids think it's brilliant, Lucy Miller said. "The timeout from WiFi and social media is great, the money saving is just a bonus."
Matthew Taylor added: "We saved loads and also used the time wisely to go out for a walk and get some fresh air instead of just being sat inside. Keep up the good work!"
Mr Jackson said the energy saved by customers during the first session "was the equivalent of taking a city like Leicester off the grid for an hour". It is understood that around 400,000 people have signed up for the scheme so far, with 'at least' 12 sessions planned between now and March next year.
Octopus said it expects to run sessions that last longer than an hour over the course of the winter, adding that it believes "households will be able to save up to £100 each."
Last week's session was the first time that National Grid had run the new service. The scheme is currently running as a trial but the system could be used in future to avoid blackouts.
Other UK energy suppliers have also signed up to the scheme, but most did not take part in Tuesday’s first run. National Grid hopes that more companies will get involved soon.
Octopus said the first session managed to provide nearly half of the energy savings that National Grid wants from all British households. "If just one other energy company delivered the same as Octopus, consumer demand could have met all National Grid’s needs for flexibility,” the company said.
National Grid hopes that by having the ability to ask people to reduce usage – and to pay them to do so – it can reduce the risk of blackouts happening. The grid is forced to black out parts of the country when demand is too high for supply to keep up with – so if it can reduce demand then they might not be necessary.
READ NEXT:
- Asda praised as it announces £5 gesture for every Christmas shopper
- More than 11 million people to receive DWP payment of up to £600 from today
- National Grid issues electricity shortage warning - then cancels it
- GPs begin prescribing heating for those that can't afford to keep warm
- Hidden code on every hot water bottle people are being warned to check
