Reward for reducing electricity consumption: British households will again help stabilize the grid this winter

To ensure the reliable operation of the electricity grid, a balance between electricity generation and consumption must be maintained at all times. Grid operators therefore do not have to rely solely on electricity generators, but can also turn to consumers. This winter, British households will once again have the opportunity to reduce their electricity consumption during the evening peak. They are set to receive a financial reward for doing so.

The operator of the British electricity grid will offer households the opportunity to actively help balance electricity generation and consumption this winter. The option was made available to households there at the beginning of this year, allowing them to cut their consumption during periods of peak demand and earn a financial bonus.

The move to involve households in balancing the grid—an option that has long been available to industry in some countries—was prompted by concerns about a potentially tight electricity market. In addition to the risk of a disruption to the remaining gas supplies from Russia to Europe, the market was also unsettled by the reduced availability of nuclear power plants in France.

According to the Financial Times, the grid operator National Grid ESO activated the service only twice, when lower output from power plants in the country was forecast. The operator also carried out a total of 20 test activations, for which participants were also paid. Around 1.6 million households and businesses took part in the scheme over last winter. National Grid plans 12 test activations for this winter.

"Last winter, the Demand Flexibility Service successfully demonstrated that consumers and businesses are interested in playing a more active role in balancing electricity consumption and receiving a reward in the form of savings," said Jake Rigg, director of corporate affairs at British grid operator National Grid ESO.

Test activations are also planned for this winter

For this winter, National Grid guarantees suppliers a payment of 3 pounds for every kilowatt-hour saved during the first six test activations. The market will determine the price for the remaining six activations. According to the Financial Times, it will then be up to suppliers to decide how much of these savings they pass on to their customers. This could give them a competitive advantage over other suppliers when seeking new customers.

"The grid operator is bringing back the Demand Flexibility Service this winter and would like more consumers to take part, both small and large," Rigg added.

According to a survey of participants' experiences last winter, 89% were satisfied with their participation in the service, while 83% said they would take part again. Participants cited satisfaction at meeting the challenge, earning a financial reward, and contributing to a collective national effort as the main benefits.