British Gas and Octopus Energy are among energy firms paying households to unplug washing machines and other key appliances at certain times, shifting usage off-peak. The UK's Demand Flexibility Service (DFS) encourages households to use energy at off-peak times to manage demand on network infrastructure.
How the scheme works
Households need to sign up through their energy firm. Once registered, they are told when a DFS event is taking place – not a cheap sofa sale, but the next chance to change how they run home appliances and get rewarded for using less energy at a certain date and time. Notice is usually given about 24 hours before, and high usage peak times are usually for one to four-hour periods in the evenings.
To receive rewards, households must cut their energy usage significantly. The Energy Saving Trust says the best way is to delay using power-hungry appliances like washing machines, tumble dryers, ovens, and dishwashers during key hours.
Payouts and rewards
The National Energy System Operator (NESO) has paid out a collective £777,800 to households between mid-April and July 14 to cut peak-time usage, according to a report by the FT. Octopus Energy allows households to earn points redeemable as bill credits. Others offer free or cheaper electricity as a reward.
The Energy Saving Trust states: “The service uses several energy saving ‘events’ throughout the year. If you’ve registered to take part, your energy supplier will let you know when there’s an upcoming event. You’ll get a notification telling you the date and time of each event – this might be on the same day or the day before. Each event usually lasts for around an hour in the evenings when demand for electricity is at its peak. If you sign up, you’ll be asked to use less electricity during each event. To thank you for taking part, energy suppliers offer their customers rewards. These include pounds or points that you can use towards paying for your energy bills. Rewards vary depending on your supplier, but the more electricity you save during each event the greater your rewards will be.”
Related policy change
New Prime Minister Andy Burnham announced an unrelated VAT cut for electricity bills set to take effect from October 1. Taken with the best deals on the market, the change could be worth as much as £255, before factoring in DFS payouts.
