National Grid Scheme

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The National Grid has introduced the Demand Flexibility Service (DFS), an energy-saving scheme that incentivises customers to reduce their power usage during peak hours.

Participants, who must be a customer of one of the 26 energy suppliers who have signed on to the scheme, will now be offered reduced rates on their energy bills, although the exact rate depends on their service provider. Energy suppliers will receive between £3 and £6 from the National Grid for every kilowatt of power saved, and BBC has estimated that the average household will save anywhere between £2 and £20. One participating supplier, Octopus Energy, has stated that customers will receive £3.37 per electricity unit.

The programme, which underwent trial runs last year, ran for the first time on Monday, 23 January between 17:00 and 18:00 GMT, and will run again on Tuesday 24 January between 16:30 and 18:00 GMT.

The service has been implemented to avoid power grid blackouts during this week’s cold snap, with National Grid explaining that “electricity supply margins are expected to be tighter than normal.” Besides the DFS, three coal plants (which had been set to permanently close in September 2022) have been put on standby in case of emergency. However, National Grid has reassured customers not to be worried about the precautionary measures, and Energy consultant EnAppSys has labelled National Grid’s choice to initiate DFS and warm up the coal plants as an “abundance of caution.”

Customers can participate in the Demand Flexibility Service by reaching out to their energy service provider.