This winter, struggling families might be compensated for using less electricity as the National Grid works to reduce the likelihood of blackouts.
In accordance with plans under consideration by the corporation, consumers with smart meters will be compensated for reducing their usage during peak hours.
As opposed to paying fossil fuel power facilities to raise production, National Grid sees the proposals as a less expensive and more environmentally beneficial option to keep the lights on.
The company in charge of distributing and transporting power and gas is frantically working to lessen the effects of the energy crisis brought on by Russia’s invasion of Ukraine. As a result, Russia has begun to limit its energy exports to Europe.
According to The Times, the proposals may result in homeowners receiving up to £6 for each kilowatt-hour they don’t use during peak hours. In comparison, households pay 28.34p per kilowatt-hour, which is sufficient to run a 100 watt lightbulb for ten hours.
Demand shifting has the potential to lower carbon emissions and save consumers money, according to National Grid, which wants to make the program available to millions of families.
Families are having a difficult time paying their energy bills, which have increased this year by 54% (to an average of £693).
When energy regulator Ofgem raises the price cap in October, they are expected to increase by another £800, to an average of £2,800 per year.
This year, National Grid ESO tested the ideas with consumers, and it now plans to make the program available to millions of families.
According to reports, it wrote to suppliers last week asking them to determine how much less energy their clients could be persuaded to consume during peak hours.
The scheme’s cost would be added to energy bills, but according to reports, the National Grid thinks the extra cost would be less than what it would cost to pay power plants to increase supply.
Six million homes could endure blackouts this winter as a result of the conflict in Ukraine, ministers were forewarned last month.
If Russia cuts off Europe’s supplies, according to Whitehall’s “realistic” worst-case scenario, there could be serious gas shortages.
Whitehall’s worst-case scenario modelling says Britain would have to implement its gas emergency plans, which would see gas-fired power stations closed.
This would lead to a shortage of electricity that could force the Government to ration it in a manner similar to Edward Heath’s three-day week in the 1970s.