This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.bbc.co.uk/news/business-63483668

The article has changed 9 times. There is an RSS feed of changes available.

Version 0 Version 1
Money-off energy scheme set out to avoid blackouts Money-off energy scheme launches to avoid blackouts
(32 minutes later)
Households will be offered discounts on their electricity bills if they cut peak-time use on a handful of days over the winter, as part of National Grid's efforts to avoid blackouts.Households will be offered discounts on their electricity bills if they cut peak-time use on a handful of days over the winter, as part of National Grid's efforts to avoid blackouts.
The network operator has announced details of the scheme, which it said could save households up to £100.The network operator has announced details of the scheme, which it said could save households up to £100.
There will be 12 "test" days initially, designed to see how customers respond, between November and March.There will be 12 "test" days initially, designed to see how customers respond, between November and March.
But only homes with smart meters will be able to take part.But only homes with smart meters will be able to take part.
Only 14 million, less than half, of households in England, Scotland and Wales, where the scheme is being tested, have a smart electricity meter installed.Only 14 million, less than half, of households in England, Scotland and Wales, where the scheme is being tested, have a smart electricity meter installed.
Customers taking part will be given 24 hours' notice of a "test" day where they will be asked to reduce their peak-time electricity use if they can during a one-hour period identified by National Grid, likely to be between 16:00 and 19:00.Customers taking part will be given 24 hours' notice of a "test" day where they will be asked to reduce their peak-time electricity use if they can during a one-hour period identified by National Grid, likely to be between 16:00 and 19:00.
That could include delaying use of a tumble-dryer or washing machine, or cooking dinner in the microwave rather than the oven.That could include delaying use of a tumble-dryer or washing machine, or cooking dinner in the microwave rather than the oven.
National Grid said it will pay energy suppliers, which will be required to sign up the scheme to operate it for customers, £3 for every kilowatt-hour during the test periods. National Grid said it will pay energy suppliers, which will be required to sign up to the scheme to operate it for customers, £3 for every kilowatt-hour during the test periods.
It will be up to individual suppliers to tell customers how much customers will receive and whether the money is taken off bills, credited to accounts, or if there's an option to withdraw the cash. Individual suppliers will decide how much customers will receive and whether the money is taken off bills, credited to accounts, or if there's an option to withdraw the cash.
National Grid is testing the idea, which it calls its "Demand Flexibility Service" at scale for the first time, to establish a system that can serve as an "insurance policy" if it needs to ease demand on the grid this winter.National Grid is testing the idea, which it calls its "Demand Flexibility Service" at scale for the first time, to establish a system that can serve as an "insurance policy" if it needs to ease demand on the grid this winter.
Households have been warned of power cuts lasting up to three hours at a time if gas supplies run extremely low, and National Grid is hoping the new scheme can, along with other measures, prevent that happening.
The scheme is also open to businesses which could, for example, change production schedules or switch to batteries or generators at peak times.
What's happening to my energy bill?What's happening to my energy bill?
Energy supplier counts cost of devices on standbyEnergy supplier counts cost of devices on standby
Blackouts would be last resort, says National GridBlackouts would be last resort, says National Grid
Households have been warned of power cuts lasting up to three hours at a time if gas supplies run extremely low, and National Grid is hoping the new scheme can, along with other measures, prevent that happening.
The electricity network operator said the service had been approved by the UK's energy regulator Ofgem, which meant electricity suppliers and providers could sign up and then advertise the scheme to customers.
It is understood many of the UK's larger energy firms are looking to take part in the trial, after being consulted in recent months on how it would work.
The scheme is also open to businesses which could, for example, change production schedules or switch to batteries or generators at peak times.
Jake Rigg, director of corporate affairs at National Grid ESO, said by signing up people could "back Britain" as well as saving money and reducing carbon emissions.Jake Rigg, director of corporate affairs at National Grid ESO, said by signing up people could "back Britain" as well as saving money and reducing carbon emissions.
"It's not a big thing or a difficult thing to do, just remembering to do it 12 times this winter and get that money back, when we are all really struggling with energy bills and the cost of living generally," he told the BBC."It's not a big thing or a difficult thing to do, just remembering to do it 12 times this winter and get that money back, when we are all really struggling with energy bills and the cost of living generally," he told the BBC.
"We can all do our little bit, we can shift demand out of that peak and help maintain security of supply throughout the winter.""We can all do our little bit, we can shift demand out of that peak and help maintain security of supply throughout the winter."
The electricity network operator said the service had been approved by the UK's energy regulator Ofgem, which meant electricity suppliers and providers could sign up and then advertise the scheme to customers.
The scheme only applies to homes with smart meters.The scheme only applies to homes with smart meters.
It is understood many of the UK's larger energy firms are looking to take part in the trial, after being consulted in recent months on how it would work.
Octopus Energy has already announced it will participate. It operated a trial scheme with 100,000 customers earlier this year, offering a much smaller discount for people who shifted their energy use away from peak times.Octopus Energy has already announced it will participate. It operated a trial scheme with 100,000 customers earlier this year, offering a much smaller discount for people who shifted their energy use away from peak times.
It believes there will more days on offer, 25 in total compared to 12 planned so far, for households to be given the chance to cut down on energy use as the UK goes through the winter.It believes there will more days on offer, 25 in total compared to 12 planned so far, for households to be given the chance to cut down on energy use as the UK goes through the winter.
National Grid said Russia's invasion of Ukraine had created "unprecedented turmoil and volatility" in the energy markets in recent months.National Grid said Russia's invasion of Ukraine had created "unprecedented turmoil and volatility" in the energy markets in recent months.
Gas flows from Russia to Europe have been disrupted since its invasion of Ukraine, leaving countries scrambling for alternative supplies, which could have a knock-on effect on Britain.Gas flows from Russia to Europe have been disrupted since its invasion of Ukraine, leaving countries scrambling for alternative supplies, which could have a knock-on effect on Britain.
The UK is heavily reliant on gas to produce electricity, with gas-fired power stations generating more than 40% of the country's electricity.The UK is heavily reliant on gas to produce electricity, with gas-fired power stations generating more than 40% of the country's electricity.
The UK also imports electricity from continental Europe.The UK also imports electricity from continental Europe.
National Grid's central view remains that there will be enough energy to provide Britain with similar levels of electricity to previous winters.National Grid's central view remains that there will be enough energy to provide Britain with similar levels of electricity to previous winters.
It said its service is aiming to save two gigawatts of electricity, which is enough to power about one million homes.It said its service is aiming to save two gigawatts of electricity, which is enough to power about one million homes.
The company has also put coal-fired power stations on standby in case they are required to boost energy generation.The company has also put coal-fired power stations on standby in case they are required to boost energy generation.