National Grid will pay households to shift electricity use to avoid blackouts
National Grid plans to reduce the risk of blackouts this winter by paying consumers to use less electricity at peak times, it has emerged.
The electricity network operator is racing to set up a scheme that will enable households with smart meters to choose to cut how much energy they use when supplies are low.
Initial proposals drawn up by National Grid’s electricity system operator (ESO) say that households could be paid up to £6 a kilowatt hour in credit instead of paying out 28.34p a kilowatt hour, The Times reported.
The move comes as the government looks for ways to secure extra energy supplies this winter and limit usage by consumers.
The business secretary, Kwasi Kwarteng, hopes to broker further deals to extend the life of Britain’s last remaining coal-fired power stations through the winter, after keeping West Burton A in Nottinghamshire in operation.
Russia’s invasion of Ukraine has put further strain on already stretched energy supplies. Ministers are concerned that – in a worst-case scenario – Britain could experience rolling blackouts this winter.
National Grid’s plans could offer a cheaper and greener alternative to fossil fuels and cut bills for consumers.
Annual bills in the UK have rocketed to £1,971 a year and are expected to top £2,800 a year in October, before hitting £3,000 in January.
National Grid’s proposals follow a trial in conjunction with Octopus Energy. In the pilot about 100,000 customers were given a day’s notice to cut their consumption during peak times such as 4.30pm to 6.30pm, when demand is highest in the UK.
Octopus said that the average household saved 23p in each two-hour period, with some consumers saving as much as £4.35.
Sources close to the scheme said consumers had regularly followed the
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