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Daily Mirror
Daily Mirror
Business
Patrick Daly

What is an off-peak energy scheme and how to register to save money on bills

With energy prices already sky-high and rising inflation eating into people’s budgets, many are choosing to keep away from the thermostat for now.

But as the months get colder, many households will reluctantly have to put on the central heating to keep the chill at bay.

There is also no getting away from energy-intensive activities, like firing up the stove to cook dinner, putting the dishwasher on or sticking clothes in the washing machine.

For some energy customers, there could be a way of cutting bill costs by spreading out your power usage and getting your electricity for a discounted rate.

What is an off-peak energy scheme?

Changes to your washing and drying habits could save you money via off-peak discount schemes (Getty Images)

The National Grid Electricity System Operator (ESO)— the organisation that controls electricity flow in Britain — is rolling out a scheme whereby it hands out cut-price energy to customers who are willing to reduce their consumption during peak hours.

With Russia’s unlawful invasion of Ukraine driving up energy prices and also limiting supply in some cases, the National Grid is looking to prevent blackouts and power shortages this winter.

It has warned of “potential risks” to Britain’s energy supply in the face of “unprecedented turmoil and volatility in energy markets in Europe and beyond”.

Grid bosses said “shortfalls of gas in continental Europe could have a range of knock-on impacts in Britain”, which is why it is experimenting with a scheme to spread out energy use across the day.

The ESO has worked out that the average household uses almost a fifth of its total daily energy during the peak hours of 4pm and 7pm.

For that reason, under its winter scheme, those who avoid using appliances when demand is high will get back £3 per kilowatt hour (kWh) — up from the 52p previously announced — to lessen the pressure on power supplies.

Which companies are offering discounted off-peak energy

Octopus Energy is signed up to the national energy discount scheme (Getty Images)

As of late October, two energy providers have signed up to the snazzily named Demand Flexibility Service — British Gas and Octopus Energy.

OVO Energy will run an off-peak discount trial with customers but it is separate from the national industry initiative, according to MoneySavingExpert’s (MSE) website.

E.On and EDF are reportedly mulling incentives to help cut down on usage this winter, but no details are available yet.

What do the off-peak schemes entail?

Energy firms are looking for participants to cut their average consumption during peak hours (Bloomberg via Getty Images)

British Gas customers opting into the scheme will likely be asked to reduce electricity use by around 30% between 4pm and 7pm.

The finer details are yet to be published, but the Mirror has approached British Gas about when the trial will be available.

MSE says it has heard the firm will roll it out before the year is out.

Octopus was a pioneer of the scheme, having worked with the National Grid on a pilot.

It expects to pay customers £4 on average during peak times between November and March through what the provider calls its Saving Sessions service.

Octopus said this could add up to £100 over winter, should a customer cut electricity use by 1kWh once or twice a week.

Its peak time could be between 4.30pm and 6.30pm, but that could be changed on a daily basis depending on national demand.

For OVO customers taking part in its Power Move trial, users who cut energy use by 12.5% between 4pm and 7pm will get £20 back each month.

The new concept will run also from November to March like the national scheme, meaning OVO households can also get up to £100 by the time spring is upon us.

OVO said techniques for saving money would include things like moving three loads of washing per week into a period of less intense demand for the grid.

How to sign up for the discount schemes

Firstly, those taking part in the schemes must have smart meters.

The firms need to track household usage during specific times of the day, so half-hourly readings will need to be read off the tech gadgets.

British Gas has not given out the details but it is expected customers will be able to register their interest to take part soon.

Octopus said all 1.4 million of its customers with smart meters will be able to take part.

Those keen to get involved can register their interest online.

OVO told MSE it is sending emails to around 5,000 eligible customers from its base of 4.5 million to invite them to join up.

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