Britain’s National Grid is set to launch its scheme to incentivize homes to reduce electricity consumption and help avoid power shortages this winter. Following the success of the service last winter, the demand flexibility service (DFS) will be implemented again. Under this program, households that register with their energy suppliers will receive payment, usually through bill credits, for switching off appliances like ovens and dishwashers during peak demand periods.
Last winter, approximately 1.6 million British homes participated in the scheme, collectively saving over 3,300 megawatt hours (MWh) of electricity, equivalent to powering around 10 million homes. The National Grid’s Electricity System Operator (ESO) aims to expand the number of participants this year, with 83% of previous participants expressing their willingness to join again, according to a survey conducted on behalf of ESO.
Participants of the scheme highlighted various benefits, including the satisfaction of managing the challenge, the rewards earned, and the sense of contributing to a national collective effort. The ESO is planning to release its outlook for expected electricity supply and demand this winter later in the year. While the early view suggests slightly higher system margins compared to last winter, the ESO remains focused on building further resilience.
Last year, the ESO warned about the possibility of three-hour rolling power cuts during the winter of 2022-2023 if the country failed to secure enough gas and electricity imports. To mitigate this risk, the DFS was introduced as a tool to help prevent such cuts. Consumers and businesses will have the opportunity to register for the scheme in the coming months, pending approval from regulator Ofgem.