Demand flexibility: National Grid to pay customers for using off-peak energy this winter

EnergyNews

National Grid’s Electricity System Operation (ESO) has released this year’s Demand Flexibility Service, encouraging homeowners to use less energy at peak times, a move which is considered essential to delivering an affordable transition to a low-carbon grid in the UK.

The proposal has been submitted to energy regulator Ofgem and, once approved, will offer financial incentives to homes and businesses, encouraging them to avoid using energy at peak times. This demand flexibility will allow the National Grid to manage the electricity network and reduce pressures on the grid, while also helping homes and businesses keep their energy bills low.

ESO has also confirmed details on the Demand Flexibility Service’s commercial proposition for electricity suppliers, aggregators and businesses.

Corporate affairs director Jake Rigg said ESO is “keen for more consumers, both large and small, to get involved. We want to work with industry to build on the past success of this new and innovative service”.


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The announcement follows the success of a trial last winter, which found that 89% of respondents were satisfied with their experience and 83% would participate again.

“Across last winter the Demand Flexibility Service successfully demonstrated the interest of consumers and businesses in playing a more active role in balancing our electricity needs and to be rewarded with savings for their action in the process,” added Rigg.

Against the backdrop of a cost-of-living crisis, the research found households finding things difficult financially were more motivated by the financial rewards of the scheme than those which were financially comfortable.

Ofgem’s  consultation on a ‘flexible’ energy system

Last month, Ofgem announced a consultation on how to encourage homes and businesses to use less energy during peak times.

The energy regulator said in a statement that a flexible system is a “key element” in the government’s plans to decarbonise the energy system by 2035.

“This concept enables Great Britain’s rising electricity consumption – resulting from growing numbers of electric vehicles (EVs) and electric heating systems – to better match GB’s increasing number of intermittent renewable energy sources, such as wind and solar power,” it added.

The consultation will remain open until 29 September.

EnergyNews

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