Britain’s National Grid Electricity System Operator (ESO) will re-implement its scheme to pay homes to reduce their electricity usage this winter. The scheme, known as the demand flexibility service (DFS), seeks to prevent power shortages. 

The announcement follows the success of the scheme last winter. Homeowners will be paid, usually in the form of money off their energy bills, for turning off large appliances during specific periods. 

Last year, 1.6 million British homes joined the scheme, saving more than 3,300 megawatt-hours of electricity.  

According to a survey conducted by the National Grid ESO, 89% of respondents who participated in last year’s scheme were satisfied with the results, with 83% saying that they would participate again. 

Ahead of last year’s scheme, the National Grid ESO warned that homes could face three-hour rolling power cuts throughout winter 2022/2023 if the country was unable to secure sufficient gas and electricity imports. According to the UK Government, Vladimir Putin’s invasion of Ukraine has impacted the country’s energy security and contributed to rising energy costs. 

The National Grid ESO said that it will conduct 12 test events between November 2023 and January 2024 in a market information report. These will run alongside the live use of the service. 

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

According to the company, this year’s service will offer providers a Guaranteed Acceptance Price of £3 per kilowatt-hour for at least six of the 12 tests, subject to the registered volumes from January 2024. 

Following the confirmation of the commercial proposition, providers are now being encouraged to prepare their offerings to households ahead of regulatory approval later in the year. Customers and businesses will be able to sign up in the coming months following approval from the UK’s energy regulator, Ofgem. 

Jake Rigg, corporate affairs director with the National Grid ESO, said in a press release that the company is “keen for more consumers, both large and small, to get involved”. 

“We want to work with industry to build on the past success of this new and innovative service,” he went on.