National Grid to pay households to use less electricity

Yesterday Sky News reported that National Grid are to pay households to use less electricity, as coal-fired power generators put on standby.

For the first time, the National Grid ESO (electricity system operator) is activating its demand flexibility service, known as DFS for short.

Some households with up to date smart meters will be eligible for the reductions and ESO said it is looking for bids from suppliers to help save up to 341 megawatts of power between 4.30pm and 6pm.

The scheme reportedly compares usage against a customer's usual demand and pays £3 for every unit or kilowatt hour (kWh) saved.

It is thought it could reduce household bills by up to £100 over the winter, but may be scrapped if weather conditions continue to improve.

The scheme is due to stay in place until March, with 26 suppliers, including Octopus Energy and EDF, supporting it.

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