London Daily

Focus on the big picture.
Saturday, Jan 03, 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
US Joint Chiefs Chairman Outlines How Operation Absolute Resolve Was Carried Out in Venezuela
Starmer Welcomes End of Maduro Era While Stressing International Law and UK Non-Involvement
Korean Beauty Turns Viral Skincare Into a Global Export Engine
UK Confirms Non-Involvement in U.S. Military Action Against Venezuela
UK Terror Watchdog Calls for Australian-Style Social Media Ban to Protect Teenagers
Iranian Protests Intensify as Another Revolutionary Guard Member Is Killed and Khamenei Blames the West
Delta Force Identified as Unit Behind U.S. Operation That Captured Venezuela’s President
Europe’s Luxury Sanctions Punish Russian Consumers While a Sanctions-Circumvention Industry Thrives
Berkshire’s Buffett-to-Abel Transition Tests Whether a One-Man Trust Model Can Survive as a System
Fraud in European Central Bank: Lagarde’s Hidden Pay Premium Exposes a Transparency Crisis at the European Central Bank
Trump Announces U.S. Large-Scale Strike on Venezuela, Declares President Maduro and Wife Captured
Tesla Loses EV Crown to China’s BYD After Annual Deliveries Decline in 2025
UK Manufacturing Growth Reaches 15-Month Peak as Output and Orders Improve in December
Beijing Threatened to Scrap UK–China Trade Talks After British Minister’s Taiwan Visit
Newly Released Files Reveal Tony Blair Pressured Officials Over Iraq Death Case Involving UK Soldiers
Top Stocks and Themes to Watch in 2026 as Markets Enter New Year with Fresh Momentum
No UK Curfew Ordered as Deepfake TikTok Falsely Attributes Decree to Prime Minister Starmer
Europe’s Largest Defence Groups Set to Return Nearly Five Billion Dollars to Shareholders in Twenty Twenty-Five
Abu Dhabi ‘Capital of Capital’: How Abu Dhabi Rose as a Sovereign Wealth Power
Diamonds Are Powering a New Quantum Revolution
Trump Threatens Strikes Against Iran if Nuclear Programme Is Restarted
Apple Escalates Legal Fight by Appealing £1.5 Billion UK Ruling Over App Store Fees
UK Debt Levels Sit Mid-Range Among Advanced Economies Despite Rising Pressures
UK Plans Royal Diplomacy with King Charles and Prince William to Reinvigorate Trade Talks with US
King Charles and Prince William Poised for Separate 2026 US Visits to Reinforce UK-US Trade and Diplomatic Ties
Apple Moves to Appeal UK Ruling Ordering £1.5 Billion in Customer Overcharge Damages
King Charles’s 2025 Christmas Message Tops UK Television Ratings on Christmas Day
The Battle Over the Internet Explodes: The United States Bars European Officials and Ignites a Diplomatic Crisis
Princesses Beatrice and Eugenie Join Royal Family at Sandringham Christmas Service
Fine Wine Investors Find Little Cheer in Third Year of Falls
UK Mortgage Rates Edge Lower as Bank of England Base Rate Cut Filters Through Lending Market
U.S. Supermarket Gives Customers Free Groceries for Christmas After Computer Glitch
Air India ‘Finds’ a Plane That Vanished 13 Years Ago
Caviar and Foie Gras? China Is Becoming a Luxury Food Powerhouse
Hong Kong Climbs to Second Globally in 2025 Tourism Rankings Behind Bangkok
From Sunniest Year on Record to Terror Plots and Sports Triumphs: The UK’s Defining Stories of 2025
Greta Thunberg Released on Bail After Arrest at London Pro-Palestinian Demonstration
Banksy Unveils New Winter Mural in London Amid Festive Season Excitement
UK Households Face Rising Financial Strain as Tax Increases Bite and Growth Loses Momentum
UK Government Approves Universal Studios Theme Park in Bedford Poised to Rival Disneyland Paris
UK Gambling Shares Slide as Traders Respond to Steep Tax Rises and Sector Uncertainty
Starmer and Trump Coordinate on Ukraine Peace Efforts in Latest Diplomatic Call
The Pilot Barricaded Himself in the Cockpit and Refused to Take Off: "We Are Not Leaving Until I Receive My Salary"
UK Fashion Label LK Bennett Pursues Accelerated Sale Amid Financial Struggles
U.S. Government Warns UK Over Free Speech in Pro-Life Campaigner Prosecution
Newly Released Files Shed Light on Jeffrey Epstein’s Extensive Links to the United Kingdom
Prince William and Prince George Volunteer Together at UK Homelessness Charity
UK Police Arrest Protesters Chanting ‘Globalise the Intifada’ as Authorities Recalibrate Free Speech Enforcement
Scambodia: The World Owes Thailand’s Military a Profound Debt of Gratitude
Women in Partial Nudity — and Bill Clinton in a Dress and Heels: The Images Revealed in the “Epstein Files”
×