National Grid ready to pay customers to switch off
Households would be paid for cutting electricity use as temperatures plummet
HOUSEHOLDS will be paid to reduce their electricity use for the first time today, between 5pm and 6pm, under plans being drawn up by the National Grid.
As temperatures are expected to plummet to -2C today, ramping up pressure on Britain’s power network, its operator is planning to ask consumers to use less electricity to help it manage supplies. Around a million people have signed up to the scheme, under which they will be paid as much as £10 per day to use less electricity at certain times. This could mean, for example, avoiding running a washing machine or dishwasher during that period, or charging an electric car overnight. The scheme has been trialled, but proposals to use it at a time of high demand have never reached this stage of planning.
Energy sources last night said agreements linked to the plans that could not be reneged on had been made with suppliers.
In a further sign of the strain on the energy supply, National Grid has asked for extra coal-fired power plants to supply back-up electricity, if needed.
National Grid’s Electricity System Operator (ESO) said it would activate the programme, known as the Demand Flexibility Service (DFS) between 5pm and 6pm today. Its spokesman said: “Our forecasts show electricity supply margins are expected to be tighter than normal on Monday evening. This does not mean electricity supplies are at risk, and people should not be worried. These are precautionary measures to maintain the buffer of spare capacity we need.” National Grid introduced the DFS service last year amid concern over power supplies this winter after the disruption to gas markets caused by Russia’s war in Ukraine and outages at France’s nuclear power stations.
Ageing nuclear plants in Britain have also closed. Meanwhile, more electricity is generated from wind and solar power, which are intermittent, making the system more complex to run.
The measures come as the Met Office issued a weather warning about freezing fog. A level-three cold alert will remain in place for England until Wednesday after temperatures plunged below -10C in parts of the UK last week.
Temperatures are expected to drop as low as -2C today and as there will be very little wind, limited electricity will come from wind farms at a time of higher demand from households.
National Grid has run several tests of the DFS scheme but has so far not needed to use it. The closest it came to doing so was on Nov 28, when it issued a notice to the market saying it might be needed, but ultimately it decided that it was not necessary.
Technically, it is possible for the request to cut supplies this evening to be rescinded. However, it is understood National Grid yesterday agreed payments
‘Bids have been accepted from suppliers and prices agreed and that can’t be reneged on. It is locked in’
with suppliers to carry out the plans so it is unlikely to do so.
A source said: “It will be the first live event for the demand flexibility scheme. Bids have been accepted from energy suppliers and prices agreed and that can’t be reneged on. It is locked in.”
Households that have signed up to the scheme will be notified by their supplier how much they will be paid to cut usage between 5pm and 6pm today. The scheme is not compulsory.
How much households can earn will depend on their supplier and how much power they normally use, but some could earn around £10 for the session, for example.
During testing, suppliers have been paid £3 per kilowatt-hour saved, but they are likely to get more in a realworld situation. Some are understood to have agreed £6 per kilowatt hour for this evening. They can choose whether to pass on the full amount to customers, or pay more. Suppliers signed up to the DFS scheme include Octopus Energy and British Gas.