National Grid plans to offer electricity savings

A spokesman told the BBC the move was to create flexibility in its network and is part of a longer term plan to not add to the level of greenhouse gases in the atmosphere.

He said that it should not have a negative impact on consumers as it was meant to balance the power grid at a time of the year when heating and lighting causes electricity demand to be higher.

In February, National Grid ESO hosted a webinar with energy suppliers to ask and understand how feasible its proposals would be if it was implemented country-wide, following its trial with Octopus Energy in February.

The Times, which reported the story, said that households, who typically pay 28.34 p for each kilowatt-hour of electricity they use, could potentially be paid as much as 6 for each kilowatt-hour they avoid using at peak times.

The way customers would redeem savings has not been established, but Octopus Energy said its customers received credit on their energy accounts and also had a self-refund option where they could get cash transferred to their bank accounts.

Savings over winter could potentially be much higher if this becomes a real service, but of course this depends on how much National Grid would pay households per kWh, the company said.

Energy firms have been asked to delay the closure of UK coal-fired power plants by the government, which has said it is exploring a wide range of options to bolster our energy security and domestic supply.