Get paid for using less energy: Households to earn cash rebates in return for cutting their electricity for first time this winter tonight

• The Demand Flexibility Scheme (DFS) offers cash for reducing electricity use 

Households will be paid cash rebates on their energy bills this evening to cut their electricity use in a bid to ease demand. 

This is the first time this winter that this regime – the Demand Flexibility Service (DFS) – will be used to manage the nation’s energy use.

The DFS is a voluntary scheme where households can be rewarded with cash for reducing electricity use at peak periods. 

Britain’s biggest energy firms, including Octopus, British Gas and E.on, work in partnership with the scheme, which is operated by National Grid ESO. 

This evening, suppliers signed up to the scheme with smart meters will be offered money back if they cut usage between 5pm to 6.30pm.

National Grid said the decision did not mean electricity supplies were at risk, adding ‘people should not be worried’.

Households will be paid cash rebates on their energy bills this evening to cut their electricity use in a bid to ease demand 

This is the first time this winter that this regime – the Demand Flexibility Service (DFS) – will be used to manage the nation’s energy use 

National Grid ESO insisted that while the gap between electricity demand and supply will be ‘tight’, this does not mean there is any risk of blackouts.

The DFS regime works by enabling households to save cash if they avoid high-power activities, such as cooking or using washing machines, for a specified period when demand is high.

The cold weather and lack of wind is expected to contribute to higher power demand, but National Grid ESO said deploying the scheme was based on a ‘combination of factors’. 

As many as one million participated in these scheme last winter, which proved very popular, however there was some disappointment at the rebates on offer, which generally added up to less than £3- £4 on average.

National Grid ESO said the amount of energy saved was enough to power almost 10 million homes. 

The scheme aims to save energy without resorting to drastic actions such as blackouts. In general, participants are asked to cut their energy by 30 per cent compared with normal peak usage, for a cash reward. 

National Grid ESO said: ‘Our forecasts show electricity supply margins are expected to be tighter than normal on Wednesday evening. We are activating a Live Demand Flexibility Service event between 5pm-6.30pm.

‘It does not mean electricity supplies are at risk and people should not be worried. These are precautionary measures to maintain the buffer of spare capacity we need.’

Washing machines are among the most power-hungry appliances in your home. People are set to be given rebates if they cut back on their energy-use during peak times this winter

The National Grid launched its DFS in January, which rewarded people for cutting power between 5pm and 6pm on one of the coldest days of the year.

Households were told they could receive payments of up to £20 if they didn’t use ovens, washing machines, tumble dryers, dishwashers, games consoles or decide not to charge cars during the hour.

But the scheme relies on users having a smart meter, a device that automatically transmits your energy usage to your provider every 30 minutes.

There have been many complaints about the devices, ranging from them logging inaccurate readings that lead to inflated bills to stopping working altogether.

Some customers were also left frustrated at receiving far less than they hoped, only being credited with pennies off their bills – though some £11m was paid out across 1.6 million homes and businesses. 

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