Can you REALLY earn £120 by doing the washing at night this winter?

At nearly 2pm on a Friday afternoon, Andrew Holmes is frantically racing around his home, switching off every electrical device in sight.

His wife, Laurie, is following him with their smart meter in hand, watching their energy consumption plummet on the screen as she shouts out instructions for what he should unplug next.

First the television, then the lamps in the living room — at one point, they even consider turning off the fridge.

Amid fears the nation faces blackouts this winter, National Grid announced it would pay households to slash their electricity use during peak hours

It may sound as though they are playing a strange game, but they are, in fact, taking part in a new energy (and money) saving pilot.

Every few weeks their supplier, Octopus Energy, asks the couple to reduce power consumption by up to 60 per cent during a specified two-hour window.

If they hit their target, they are rewarded with a cash bonus of up to £4.35 per session.

‘We became obsessed with the game of it,’ says Andrew, 39, from Reading. ‘One night, we just sat in candlelight and read our books.’

It may sound radical, but from next month families up and down the country could be asked to do the same.

Amid fears the nation faces blackouts this winter, sparked by gas shortages across Europe, the Electricity Service Operator (ESO) — a branch of National Grid — announced last week that it would pay households to slash their electricity usage during peak hours.

This may mean running your washing machine and dishwasher at night instead of during the day.

Initial estimates suggest those taking part in the new scheme could shave around £120 off their energy bills over winter. At a time when everyone is worried about the soaring cost of living, such a saving on energy bills will be an attractive proposition to many.

Rocketing gas prices have seen the typical household energy bill more than double compared to last year, even after the Government stepped in with a £60 billion support package. 

However, National Grid’s proposal has prompted a backlash, as customers must have a smart meter to participate. 

Currently, only around half of homes and small businesses have these devices, which monitor your energy usage in real time.

What’s more, major providers have been slow to sign up. So far, only Octopus, which ran a trial of the scheme earlier this year, has confirmed that its customers will be able to benefit.

Pioneers: Laurie and Andrew Holmes took part in a trial of the energy-saving scheme

Pioneers: Laurie and Andrew Holmes took part in a trial of the energy-saving scheme

This has led to concerns there could be a ‘household lottery’, with families penalised simply for being with the wrong supplier or because they cannot get — or do not want — a smart meter.

Critics also say the gadgets are not reliable enough to facilitate such an ambitious scheme. Here, Money Mail explains all you need to know . . .

Off-peak perks

Households will be able to sign up for the Demand Flexibility Service, run by the National Grid, from November 1.

The idea is to provide an incentive for customers to cut their electricity consumption by a certain amount during peak times. For example, this might be between 9am and 11am, and 4.30pm and 6.30pm.

Energy suppliers will send an email or text message to customers ahead of the peak periods to inform them when they will begin, so people have a chance to plan ahead. National Grid originally said customers could save around £10 per session if they meet the energy-saving target.

It is understood that households will be offered a minimum of £3 per kilowatt-hour (kWh) of power they save by avoiding peak times.

One dishwasher cycle uses just over 1 kWh of power. The money will not be paid in cash, but credited to the customer’s energy account.

It was initially reported that the scheme would run 12 times between November and March — saving customers as much as £120.

However, yesterday a National Grid spokesman stressed that this was merely a ‘ballpark’ estimate, and exact payments will vary.

He says the scheme’s motive is to balance supply and demand to avoid blackouts, rather than to offer financial support to customers.

Octopus Energy, the only supplier to have publicly signed up to the initiative, estimates its customers would save £100 on average over the winter period if they were to take part.

The supplier ran a pilot scheme in collaboration with National Grid between February and March this year, involving 100,000 homes.

The payments offered during the trial were modest — but experts say it proved that customers would alter their habits for a ‘small’ financial incentive.

Among those who took part were Andrew and Laurie.

The couple were asked to slash their typical energy consumption by between 40 pc and 60 per cent during eight, two-hour windows.

Power hungry: Households will be offered a minimum £3 per kilowatt-hour (kWh) of power they save by avoiding peak times. One kWh is the equivalent of a dishwasher cycle

Power hungry: Households will be offered a minimum £3 per kilowatt-hour (kWh) of power they save by avoiding peak times. One kWh is the equivalent of a dishwasher cycle

Most sessions occurred during the day. But one began at midnight, which made it far more difficult for the couple to hit their target because they barely used any electricity at night.

Octopus says participants earned as much as £4.35 per two-hour window. However, on average customers made just 23p each time. Andrew and Laurie say they pocketed only a few pounds in total. But they also saved money by using less power than usual.

Andrew says: ‘For us, it was more about the game than the savings. It taught us a lot about our energy usage, too, and how much each appliance actually uses.’

Octopus customers taking part in the trial used 197 MWh (megawatt hours) less power during the scheduled peak times than normal. That’s the equivalent of streaming 2.5 million hours of TV shows on Netflix.

National Grid says its official scheme could differ from this trial, and that the details will be announced in due course.

Household lotto

In theory, anyone who has a smart meter should be able to take part in National Grid’s Demand Flexibility Service. At present, this includes around half of all households and small businesses in the UK.

Customers must also agree to their supplier recording half-hourly meter readings. The default smart meter setting is typically to take readings once a month.

Their provider must also have signed up to offer the new incentive.

Yet with just less than three weeks to go until the launch, only Octopus Energy has confirmed that all 1.4 million of its smart meter customers will be invited to take part.

British Gas and EDF Energy say they have not established the final details of how the scheme will work. E.On says it is ‘investigating the appetite’ of its customers for the initiative.

Bulb, which is under special administration after going bust last year, says it will have no involvement.

Ovo, meanwhile, has announced its own flexibility service trial, called Power Move, which is not connected to the National Grid’s offering. The supplier will reward customers with £20 a month if they reach a target of reduced consumption during peak hours — that’s £100 over winter. The scheme runs from November 1 to March 31, 2023.

Critics claim the projects will disproportionately benefit customers whose energy usage is already high — because it is easier for them to reduce their consumption. Those who are poorer, elderly or vulnerable are more likely to have already slashed their power usage in the face of rising bills.

Dennis Reed, from campaigning body Silver Voices, says: ‘If your heating has been turned off and you heat the water only once a week for a bath and to do the washing, then these cost-saving incentives are a slap in the face.

‘The service also relies on the existence of smart meters — contraptions which many older households do not have.

‘This measure is a public relations stunt, aimed at energy-guzzling younger households who probably have an SUV parked outside.’

Not so smart

The scheme requires households to have a smart meter installed. However, thousands of people are unable to have one because they live in rural areas with a poor mobile phone signal, high-rise flats or properties with thick walls.

Excluded: Thousands of energy customers are unable to get smart meter because they live in rural areas with a poor mobile signal, high-rise flats or properties with thick walls

Excluded: Thousands of energy customers are unable to get smart meter because they live in rural areas with a poor mobile signal, high-rise flats or properties with thick walls

These details pose a problem because the digital meters rely on 2G and 3G networks, which are older versions of the systems that connect your mobile phone to the internet when not using a Wi-Fi connection.

Some suppliers are also refusing to offer the devices owing to a global shortage of parts. And even those who do have one may struggle to benefit from the scheme because of service issues.

In recent weeks, Money Mail has received a deluge of letters from readers claiming that their smart meters are not fit for purpose.

Many say the readings provided to their suppliers are inaccurate, leading to inflated bills. While others claim the digital screens that should show how much power they are using are faulty.

We were so concerned about the sheer volume of complaints that we submitted a dossier to industry watchdog Ofgem last month. 

And as your horror stories continue to flood into our postbag, we have now handed a second file to the regulator for investigation.

One Money Mail reader says he has been waiting for six years to have his faulty meter replaced.

Gareth Kloet, energy spokesman for Go Compare, says: ‘In theory, anything that makes people think twice about their energy usage is a good thing. But you can imagine there will be lots of billing and administrative errors owing to smart meters not working properly.’

An Ofgem spokesman says: ‘Suppliers are required to ensure smart meters are in proper working order, and we have robust measures to monitor supplier compliance with licence conditions.

‘We engage regularly with suppliers and take enforcement action where appropriate.’

Blackout risks

National Grid warned last week that it was preparing for the possibility of blackouts this winter. But no power cuts are currently planned.

The proposals are based on a worst-case scenario, if extreme gas shortages and cold weather mean demand outstrips supply.

Feeling the heat: Rocketing gas prices have already seen the typical household energy bill more than double since last year

Feeling the heat: Rocketing gas prices have already seen the typical household energy bill more than double since last year

The UK relies on natural gas to generate around 40 per cent of its electricity. But supplies from abroad have been disrupted by Russia’s invasion of Ukraine.

If the electricity grid faces a supply shortfall, three-hour power cuts could be introduced in certain parts of the country. 

Households would lose power at different times, and would typically be alerted in advance via text message.

Any cut-offs are likely to occur during peak times in the morning or between 4pm and 7pm.

Hospitals and other ‘protected sites’, such as water treatment plants, airports and military bases, would not lose power.

But charities warn power cuts could put people who rely on life-saving equipment at risk.

Silver Voices is calling on the Government to hold an emergency Cobra meeting to discuss how it will protect elderly households from blackouts.

Cobra is shorthand for the Civil Contingencies Committee, which convenes in the Cabinet Office in times of emergency — such as at the beginning of the pandemic.

Dennis Reed says: ‘It is disgraceful that rolling blackouts have been mooted without any thought of plans to protect vulnerable households. We can’t go into winter on a wing and a prayer.’

The Cabinet Office refused to speculate on whether it would hold a Cobra meeting.

The Energy Networks Association says customers who are medically dependent on electricity will often have back-up power sources to keep equipment going during a power failure. It advises people who require a continuous supply of electricity for medical reasons to seek advice from their local health service provider.

Energy suppliers also run a priority services register, which gives vulnerable people advance warning of planned power cuts and priority support in emergencies.

To be added to the register, contact your energy supplier directly.

moneymail@dailymail.co.uk

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