National Grid, the transmission systems operator, announced that it will compensate UK consumers for using less electricity on January 23rd. Under a new program called the Demand Flexibility Service (DFS), customers will receive incentives if they agree to reduce their electricity usage during peak demand hours.
The program, which has previously been tested on a smaller scale with one supplier, will now be supported by 26 energy suppliers, including Octopus Energy and France’s EDF. However, National Grid has requested that three coal-powered generators be used as a backup to address potential issues with harsh winter temperatures.
Homeowners who have up-to-date smart meters and have signed up for the program through their energy provider will be eligible for discounts if they reduce their power usage at certain times. The program will measure consumption against a customer’s average demand and pay $3.7 (£3) for every kilowatt-hour saved. According to reports, it could save homes up to $123.9 (£100) during the winter. The program will end in March.
A National Grid spokesperson stated that while electricity supply margins are expected to be tighter than normal on Monday evening, this does not mean that electricity supplies are at risk and that there is no cause for concern.
These measures are being taken as a precautionary measure to maintain a buffer of spare capacity. The DFS service was launched last year in response to concerns about power supply during the winter, following disruptions caused by the Russian invasion of Ukraine and outages on France’s nuclear fleet.
