Cut energy usage at certain times to earn credit on bills, households urged

London-based customers of one of the UK’s largest energy companies will earn money off their bills if they limit consumption during certain times this winter, under a new plan to better balance supply and demand.

More than a million Octopus Energy customers with smart meters in their homes are being invited to take part in a two-month trial being run in conjunction with National Grid, the company responsible for transmitting and distributing energy in the UK.

The initiative will credit customer accounts by up to 35p for every kilowatt hour conserved during a series of two-hour windows.

The trial will take place between tomorrow, Friday 11 February and Thursday 31 March. Over this period, participants will be asked to reduce their normal energy consumption during a two-hour time slot, either: 12am to 2am; 9am to 11am; or 4.30pm to 6.30pm.

Time slots will be announced a day in advance to give those taking part the chance to opt out.

Octopus Energy is partnering with the National Grid Electricity System Operator (ESO) for the trial. The ESO wants to use data from the pilot to improve the efficiency of matching supply with demand. It said money could be saved by doing this that can help to reduce energy bills.

Each two-hour window could save as much as 150 Megawatts (MW) of power. 1 MW is enough power to boil a thousand kettles.

Isabelle Haigh of ESO said that the trial would provide valuable insight into how suppliers can make use of domestic flexibility to reduce stress on the supply system during high demand.

“Encouraging households to engage in exciting climate-friendly energy opportunities like this trial will be crucial in our transition to net zero,” said Haigh.

She added: “System flexibility is vital to help manage and reduce peak electricity demand and keep Britain’s electricity flowing securely.”

The incentive comes less than a week after the energy regulator, Ofgem, confirmed a 54% increase in its energy price cap for 22 million households in England, Scotland and Wales. From April 1, the cap will increase from £1,277 to just under £1,971 for those with average consumption levels.

In effect, this means that an average energy bill payer on a dual-fuel standard variable rate tariff, paying by direct debit, will pay an extra £693 a year.