Energy Saving Scheme Bonus using Demand Flexibility Service

Published / Last Updated on 25/01/2023

The National Grid has this week started a new energy saving scheme called the Demand Flexibility Service where energy suppliers will be paid to reduce electricity consumption during peak use hours and bonuses of £3 per kWh or more may be paid to consumers.  The scheme started on Monday 23rd January 2023 for encouraging reduced electricity useage between 5pm and 6pm and then again on Tuesday 24th between 4.30pm and 6pm.

How it works:

  • A maximum  of 12 selected days may have the Demand Flexibility Service available between now and March 2023.
  • National Grid will pay energy suppliers between £3 and £6 per kWh reduced useage.
  • Energy suppliers will pass some if not all of the incentive paid to domestic and some domestic users.
  • Research by the BBC suggests that your discount will on average by £3 per kWh although one supplier is offering £3.37 per kWh discount on reduced consumption.
  • Most energy suppliers have signed up to the Demand Flexibility Service.  You can check if your supplier is participating:  https://www.nationalgrideso.com/industry-information/balancing-services/demand-flexibility/approved-provider-list
  • You must have a smart meter.  This is how your energy supplier can accurately monitor you reduced consumption if any when Demand Flexibility Service times are live.
  • National Grid suggests there will be no power cuts as coal fired power stations are in reserve and ready to be used if we need then.

Why Now?

The Demand Flexibility Service has been in force this week due to the very calm but cold weather conditions, no wind and low wind speeds have massively reduced the UK’s ability to produce electricity via wind turbines.  Over 26% of the UK’s electricity supply was via wind power in 2021 and will increase over the coming years.

Electrical Applicances With Most Consumption

Appliance

KW per hour (kWh)

KW used over 1.5hrs

Usual Cost at current £0.34 kWh Price Cap

KWh saved if Don't Use

Potential Discount at £3 per kWh

LCD TV (average size)

0.12

0.18

£0.06

0.18

£0.54

Fridge freezer (Large)

0.05

0.08

£0.03

 

 

Tumble dryer (full load)

2.50

3.75

£1.28

3.75

£11.25

Electric hob

0.50

0.75

£0.26

0.75

£2.25

Electric oven

0.80

1.20

£0.41

1.20

£3.60

Dishwasher

1.44

2.16

£0.73

2.16

£6.48

Kettle (1 litre water)

0.11 (per boil)

0.17 (per boil)

£0.06 (per boil)

0.17

£0.50

Total Saved

 

 

 

8.21

£24.62

Save money on reduced electricity use during peak hours when the Demand Flexibility Service is in force by boiling your kettle and making a ‘cuppa’ before 4.30pm or after 6pm, turn off your lights, television and do not cook, your washing, tumble drying or ‘doing the dishes’ using your dishwasher during the hours when the Demand Flexibility Service is in force.  Reducing peak time use may get you a nice discount.

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