Should you switch off for the energy and money saving scheme?

Would you switch off your washing machine and cooker for an hour 

A window into the way many of us will pay for our energy in future was revealed last night when up to a million households participated in a scheme to cut electricity usage at peak hours.

Those who took part in the ‘demand flexibility service’, overseen by National Grid, were paid (yes, paid) to use less electricity between 4.30pm and 6pm. 

They did this by delaying use of their oven, dishwasher or washing machine, switching off some lights and putting appliances on standby.

By ensuring National Grid did not have to resort to drastic measures — such as turning to coal-fired power plants — to boost energy supplies, households were rewarded with credits against their bills totalling more than £2 million.

That’s a big total figure, but the cash boost for individual households was in most cases about £2; in exceptional cases as high as £20. 

Modest sums, but not to be scoffed at in these difficult times for many households as inflation stays above 10 per cent and high energy bills remain the order of the day.

It was the second consecutive night that National Grid had triggered the service, thanks to cold weather blanketing most of the country (except Scotland). 

And it is likely the trigger will be pulled again — and again — in coming weeks, as more cold fronts head our way and National Grid assesses the effectiveness of the scheme in reducing spikes in energy usage and averting the need for blackouts.

Although the service has been embraced by many homes, it is not without its teething problems.

Some people who have contacted Money Mail in the past 24 hours say they eagerly agreed to join it through their energy supplier, only discovering that the company was not taking part on either Monday or Tuesday when they did not receive a confirmation email saying they were in. 

Companies taking part in the initiative include British Gas, E.ON Energy, EDF, Octopus Energy and Ovo Energy.

Others complain that the savings are derisory, while a number argue the scheme discriminates against the elderly and some poorer households because it is available only for those who have had a smart meter installed; those who pre-pay for their electricity or prefer to take their own meter readings are excluded.

Finally, some would love to join but are unable to because they have been waiting an age (in some instances more than six months) for someone from their energy supplier to install a smart meter.

Savings: Households earned cash  by delaying use of their oven, dishwasher or washing machine, switching off some lights and putting appliances on standby

How much does wearing an extra jumper save you? 

 

When we reach for the thermostat dial, most of us will still hear the age-old money-saving advice of ‘Just put another layer on!’ echoing in our ears. 

But how much can the humble jumper actually save you? 

This is Money has worked out how much you could save by putting on a jumper rather than reaching for the thermostat dial. 

> How much money does putting on a jumper really save on energy bills? 

We use the time to play board games together

One family that has taken to the scheme with gusto are the Michelles, from Bushey in Hertfordshire. They are among 400,000 customers with Octopus who agreed to reduce their electricity consumption last night and on Monday.

Caroline Michelle, 43, a primary school teacher, is married and has three children. She says they have taken part in a number of identical trials that Octopus has run since last November. 

They have so far earned more than £20 of so-called OctoPoints as a result of reducing their energy usage at specific times during the day or early evening.

Caroline says: ‘Over the course of the sessions we’ve learnt what we should do to bring our energy usage down, so the amount we’ve saved has got bigger.

‘In the first session we didn’t think about switching off the oven at the mains — but when it came to the second one, we noticed the oven clock ticking away, so we turned it off. We also realised there were a lot of appliances supping energy. Again, we unplugged them.’

What Caroline loved about the sessions was the chance to spend precious time with her family, playing board games such as Monopoly and Cluedo.

She says: ‘We try to make the time as fun as possible. The children go round the house turning off plugs and unplugging things, while ensuring key items such as the fridge-freezer are kept on. We try to build up the excitement as we wait for our points, hoping we’ve beaten last time and become even more energy-efficient.’

I was offered 39p to 49p, I said: ‘No thanks’

Charles Hocking, who lives in Glasgow, is less enamoured. Like the Michelles, he has signed up to the demand flexibility service — through E.ON — and also participated previously. 

But on Monday and last night, he opted out. ‘When E.ON emailed me at the weekend asking me to take part in Monday’s switch-off, I declined,’ he says. ‘It told me I was likely to save between 39p and 49p. I just didn’t think it was worth it.’

Charles, a 72-year-old retired accounts manager, says that on the three occasions he has played ball, he has earned combined credits worth £1.50.

He adds: ‘I’ve delayed putting on the washing machine for an hour, or pushed back the evening meal I’ve cooked for my wife. Am I convinced by the scheme? Not really.’

Steve Reilly, from Poole in Dorset, was eager to receive cash back from his supplier, Shell Energy, and opted to receive an invitation from the company to take part in the demand flexibility service.

But none was forthcoming, so he missed out. After engaging with Shell via its online chatbot, he was told the company had not taken part after all.

Steve, a semi-retired retail expert, says he is disappointed, especially as National Grid had said Shell was taking part in the scheme. ‘All noise, no action,’ he says.

Also disappointed is Maureen Higgins, from Wigan, another Shell Energy customer. She very much wanted to take part. Since moving into her new home last September, she has grown to love — and hate — her smart meter.

Maureen, a 70-year-old retired motor insurance underwriter, says: ‘I wake up in the morning and before I boil the kettle, I see I have already used 60p of electricity. If I use the oven, it positively scares me as I see the cost ratchet up.’

‘I would have been delighted to get some cash back. But when I enquired, I was told Shell wasn’t taking part but was merely exploring with National Grid how customers can be part of the scheme.’

Others were thwarted because they are still waiting for their smart meter to be installed.

‘I would have loved to have helped this country by taking part,’ says 77-year-old Peter Horwood, a retired quantity surveyor from Walton-on-Thames in Surrey. ‘But I’m still waiting for the smart meter I was told would be installed six months ago. All deeply frustrating.’

There is no doubt the past few days have given us an idea of the future travel of energy pricing. Those with smart meters will be the main beneficiaries.

But it won’t be a smooth journey — and it won’t have the same positive impact on our energy bills as a quick ending to Vladimir Putin’s assault on Ukraine would.

What you need to know about new power (and money) saving scheme 

The scheme is open to households with smart meters, who can be rewarded for reducing energy use at peak periods

What is the scheme?

The Demand Flexibility Service is a voluntary scheme where households with smart meters are rewarded for reducing their energy use at peak times.

In total, 26 energy firms offer the scheme, which is operated by the Electricity System Operator (ESO) — a branch of National Grid. The first live event was on Monday night between 5pm and 6pm.

Why now?

The scheme aims to save energy without resorting to drastic actions such as blackouts, firing up old coal-fired power stations or building expensive new ones. The recent cold weather has driven up the demand for electricity to heat homes, while a lack of wind has reduced the amount of renewable energy available to suppliers.

Will it be every day?

It has taken place for the past two nights but there is no concrete plan for the next session. When asked whether it could become a feature of British life each winter, Craig Dyke of ESO said: ‘This is the start of something bigger.’

Will it be expanded to all?

There are currently no plans to expand the scheme to households without smart meters.

If eligible, you will receive an email from your electricity supplier.

How do i know if i’m saving?

How much you can save will depend on your provider and your usual energy usage. In trials, most have made a saving of around £2 per hour-long session, but National Grid says heavy electricity users could earn as much as £20 by cutting back.

British Gas says it will pay £6 for every kilowatt hour saved, and boost customers who make small savings to make sure they earn at least £1 from each event.

Participants can check their smart meter to see if usage has fallen, but they will not find out immediately how much money they saved. Octopus Energy and E.ON customers must wait up to 14 days before it appears on their online account or monthly bill.

Octopus predicts the average home will save £36 over winter, but up to £100 depending on energy usage. British Gas says there is the potential to earn £200.

Do i have to cut my usage to benefit?

IT depends on your energy supplier. British Gas customers will have to cut usage by at least 30 pc to earn a reward, whereas there is no bottom line for Octopus Energy users. 

E.ON customers are given a personalised energy-saving target ahead of the event, based on their average usage. If they hit the target, they will receive a reward.

Will suppliers offer variable pricing?

National Grid ESO has not released any plans as to how this scheme could be used to build up tariffs based on variable pricing.

Isn’t it the same as economy 7 tariff?

No, this scheme is a mass electricity switch-off event. Economy 7 is a deal that customers sign up to permanently. The Economy 7 tariff, also known as a ‘time-of-use’ tariff, offers a cheaper rate during a seven-hour period when you are less likely to use energy — typically at night.

How is money paid?

British Gas and E.ON customers will receive the money as credit on their account. Octopus Energy customers earn rewards called OctoPoints which can also be transferred into account credit or made as a donation to help customers in need.

How do you find out when it is running?

Eligible customers will be told the day before an event takes place via email or app. Most providers require customers to opt in to earn the reward from the session.