London Daily

Focus on the big picture.
Tuesday, Mar 10, 2026

Money-off energy scheme launches to avoid blackouts

Money-off energy scheme launches 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.

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.

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.

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 to the scheme to operate it for customers for a smart meter, £3 for every kilowatt-hour during the test periods.


What is a smart meter?


Smart meters replace your existing gas and electricity meters and measure the energy you use at home. The big difference is that they send this information directly to your supplier over wireless networks in real-time.

Suppliers say that this means you pay only for what you use, so bills are more accurate than estimated ones. It also means you can monitor your usage more closely and adjust your habits if you're looking to save money.

But if you live in an area with weak signal, your meters might struggle to communicate with your supplier effectively.

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.

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.

"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."

The scheme only applies to homes with smart meters.


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 be 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.

Octopus Energy said that 350,000 customers had signed up in advance of the latest test days.

Its boss, Greg Jackson, said: "Let's be very clear: this is an historic moment - we're entering a new era of energy in which households are moving from passive off-takers to active enablers of a smarter, greener and cheaper grid."

He suggested that the service could mean "we make blackouts a thing of the past, and bring costs down for everyone."

Dunkan Armstrong, an Octopus Energy customer based in Edinburgh, took part in the trial of the new scheme and said he was asked to reduce his energy usage for a couple of hours a day.

A retired IT architect, he set up a system where his dishwasher and washing machine only switched on overnight.

"If I reduced usage by 40% between 4pm and 6pm I would get all of the electricity I used in that period for free."

He said that he enjoyed the challenge although he did not save a huge amount of money.

The financial incentive has now gone up and he adds: "I would still do it anyway, for the sake of me turning off my energy so others who desperately need it don't have to experience blackouts."


Gas reliance


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.

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.

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.

The company has also put coal-fired power stations on standby in case they are required to boost energy generation.

Newsletter

Related Articles

0:00
0:00
Close
Roman Abramovich Signals Legal Fight if UK Seeks to Seize Chelsea Sale Funds
UK Ready to Back Emergency Oil Reserve Release as Middle East Conflict Pushes Prices Higher
Study of 40,000 Articles Sparks Debate Over Alleged Anti-Muslim Bias in UK Media
US and UK Army Chiefs Strengthen Cooperation on the Future of Armored Warfare
Britain’s Search for the Next ARM Intensifies as Startups and Investors Target the Semiconductor Frontier
Three US Strategic Bombers Arrive at RAF Fairford as Iran Conflict Intensifies
Cancer Death Rates in the UK Fall to the Lowest Level on Record
UK Government Bond Yields Retreat Slightly After Sharp Spike Triggered by Middle East Conflict
UK Chancellor Warns Middle East War Could Push Inflation Higher
UK Prime Minister Warns Iran Conflict Could Drive Up Prices and Threaten Economic Stability
Trump Declines UK Offer to Deploy Aircraft Carriers to Middle East Amid Iran Conflict
Prince Harry and Meghan Markle to Return to Australia After Seven Years for Philanthropic and Business Engagements
UK Government Signals Independence From Washington as Cooper Says Britain Does Not Agree With Trump on Every Issue
UK Experts Warn AI Chatbots Are Fueling Surge in Claims of Organised ‘Satanic’ Ritual Abuse
UK Political Parties Divided Over Strategy as Iran Conflict Reshapes Foreign Policy Debate
Britain Discloses Secret Military Repair Hubs Operating Inside Ukraine
Trump Says US No Longer Needs UK Carrier Support After Delayed Offer Amid Iran Conflict
Why Britain Has Become Involved in the US-Israel Military Campaign Against Iran
UK Gas Storage Falls to Under Two Days as Iran Conflict Jolts Global Energy Markets
UK Warned to Brace for Economic Shock as Iran War Drives Global Energy Price Surge
Starmer and Trump Hold First Call After Public Dispute Over Iran Conflict
UK Dentists Returned £1.3 Billion to Government as Shift Toward Private Care Accelerates
Expert Warns UK Must Build Emergency Food Stockpiles to Prepare for Climate Shocks or War
UK Plans Charter Flight to Evacuate British Nationals from Gulf as Regional Conflict Disrupts Air Travel
Families of Zimbabwe’s Liberation Fighters Call on Britain to Help Locate Skulls Taken During Colonial War
Iran’s Ambassador Warns Britain to ‘Be Very Careful’ Over Deeper Role in Expanding Middle East War
UK Military Leadership Defends Britain’s Defensive Role in Expanding Middle East Conflict
Four U.S. Strategic Bombers Arrive in Britain as Iran War Intensifies
Soham Murderer Ian Huntley Dies After Violent Attack in High-Security Prison
UK Lawmakers and Experts Condemn Scale of Overseas Human Remains Held in British Museums
Royal Navy Aircraft Carrier HMS Prince of Wales Placed on Standby for Potential Deployment
United Kingdom Confirms U.S. Military Using British Bases for Operations Targeting Iranian Missile Sites
Starmer Defends UK Role in Iran Conflict After Renewed Criticism from President Trump
Blue Owl Reveals £36 Million Exposure After Collapse of UK Lender Serving Wealthy Clients
UK Asylum Reform Plan Triggers Fierce Debate Over Border Control and Humanitarian Impact
US Stealth Bombers Head to UK Base as Trump Issues Stark Warning to Iran
UK Deputy Prime Minister Says Legal Case Could Exist for British Strikes on Iranian Missile Sites
Investigators Link Mysterious Parcel Fires Across Europe to Russian Intelligence Operation
Debate Intensifies Over Britain’s Legal Justification for US Military Operations Launched From UK Bases
Britain Faces Heightened Energy Price Risks as Iran-Linked Tensions Threaten Global Oil and Gas Supplies
British Counter-Terror Police Arrest Four Suspected of Spying on Jewish Community for Iran
Axel Springer Agrees $770 Million Deal to Acquire Britain’s Daily Telegraph
Iceland Supermarket Drops Trademark Challenge Against Icelandic Government in Long-Running Naming Dispute
UK Defence Secretary Visits Cyprus Following Scrutiny of Britain’s Response to Drone Attacks
Questions Grow Over Britain’s Military Readiness as Response to Iran Conflict Draws Scrutiny
UK Offers Failed Asylum Seeker Families Up to Forty Thousand Pounds to Leave Voluntarily
Saharan Dust Could Bring ‘Blood Rain’ to Parts of the UK as Weather Systems Shift
UK Deploys Additional Typhoon Fighter Jets to Qatar and Helicopters to Cyprus Amid Rising Middle East Tensions
Experts Urge Britain to Accelerate Renewable Energy Push as Global Conflicts Drive Up Costs
British Public Shows Strong Reluctance to Join Wider War in Iran
×