A nation-wide scheme which pays households to use less energy at peak times returns from today.
The National Grid ESO has brought back its Demand Flexibility Service (DFS) for the second year. The scheme rewards households who reduce their electricity use at peak times when demand is high in a bid to cut pressure on the grid and prevent blackouts.
The Demand Flexibility Service will run from today until March 31 next year just like last year, the National Grid ESO says it will run 12 tests between November and March - each of these tests will run for one hour although some could last longer. During the tests, those who have signed up should try and reduce their electricity consumption.
The first six tests will pay DFS providers signed up to the scheme - such as energy suppliers, aggregators, and third parties - a price of £3 per kilowatt hour saved. These savings should then be passed onto their customers through rewards such as pounds, points, or prizes.
The payments for the second lot of six tests will be decided by the National Grid at a later date and will be dependent on how many people sign up. The exact amount you could make from signing up does depend on your individual circumstances and how much electricity you normally use.
The National Grid ESO told The Mirror that the amount of electricity a household saves on the day is compared to that individual household's average amount normally rather than the average of a larger group of households. It's important to note that you can only sign up for the DFS if you have a smart meter or an electronic device measuring electricity use. Businesses with smart meters can also sign up.
Before the event, households that are signed up for the scheme provide their energy supplier with 60 days' worth of data from their smart meter. This data is then analysed and 10 days where energy use for the household is most similar is used to work out the average electricity consumption for the home during the hours of the event.
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The energy company will use this rate to compare the event data collected to work out how much a person can make to reduce their energy consumption during the event window. Last winter, £11million was paid out to the 1.6 million participants of the DFS scheme.
The National Grid ESO has reiterated that the scheme is all about reducing your energy use where you can and they are not asking people to "go without electricity". If you sign up and for any reason are unable to reduce your electricity consumption during the "Savings Sessions" then you will not receive a penalty. Participating in the service is completely optional and customers do not have to take part in all events if they choose not to.
How do I sign up for the Demand Flexibility Service?
If you want to sign up for the scheme and you have a working smart meter then you can do so through a registered DFS provider. The UK's big six energy suppliers British Gas, Octopus Energy, OVO Energy, EDF, E.ON Next, and Scottish Power are taking part.
You can find the full list of suppliers taking part on the ESO's website here. The National Grid ESO said that many retail energy suppliers are taking part the ESO’s DFS this year and will likely contact you if they are taking part.
There are also a number of online/app providers who can provide access to the service by linking directly to your smart meter data without contacting your energy provider as well. You should note that only one household can take part with one DFS-registered provider at any time.