Households with smart meters could be paid for turning off high-energy appliances such as washing machines during peak times to reduce the risk of blackouts this winter. The National Grid Electricity System Operator (ESO) is understood to be preparing to announce plans to reward consumers for easing the strain on the power grid.
Rebates for minimising the use of goods such as tumble dryers, dishwashers and games consoles during the peak hours of 5pm-8pm could be as high as £6 per kWh saved. The Sunday Times, which first reported the plans, said the grid will apply to the Ofgem regulator for approval, with hopes the scheme will open by late October.
A National Grid ESO spokesman said: “We are developing a new service that will be available for consumers to benefit from across this winter and will be announcing further information soon.”
The plans follow a trial with Octopus Energy customers earlier this year, when as little as 20p was paid for every kWh, or kilowatt hour, saved. A range of prices have since been considered, including up to £6.
A consultation into how this would be implemented and who would be eligible to take part is currently underway.
Ofgem will announce the change to the price cap for October on Friday, August 26.
At the moment, the price cap for millions of households on the standard tariff is £1,971, however, experts at the Auxilione consultancy are forecasting it will increase to £3,600 in October, before going as high as £4,704 in January and then a stomach-churning £5,856 in April.
Chancellor Nadhim Zahawi last week suggested that rolling blackouts are unlikely as preparations were under way for the winter, as Russia’s invasion of Ukraine strains supplies.
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