Major update issued on energy scheme that pays you to use electricity at night

A money-savingscheme is to be extended all year round in a major boost for households.

Earlier this year, it was confirmed the National Grid Demand Flexibility Scheme (DFS) will be launching once again this winter. However, this time, it will continue past the winter months, covering the entire year. The National Grid’s National Electricity System Operator (NESO) - a subsidiary of the National Grid - has published the updated plans in it's "Ahead plans" today.

Introduced in 2022, Demand Flexibility Service is a scheme that gives billpayers money, points, or prizes to reduce their during peak usage hours. The scheme helps reduce demand, cutting pressure on the grid and preventing potential blackouts.

NESA said the scheme would be reintroduced this year pending Ofgem's approval. Last year, 2.2million households and businesses signed up, along with 43 providers. The changes means that customers will be able to take part throughout the year as opposed to just over the winter months.

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NESO said the change is due to a low risk of blackouts this winter, so it no longer needs to be used as an "emergency contingency plan". Instead, NESA says it expects power plants, wind farms and other generation methods to be able to provide more than enough power to meet demand.

Given the improved outlook, the scheme has also been redesigned so NESO can keep managing its margins, which is the difference between the supply of electricity and demand for it, all year round.

Craig Dyke, director of system operations at NESO, said: “As we publish our first Winter Outlook as the National Energy System Operator, it is positive to see that margins forecast for this winter are the highest since 2019/20. While our margin assessment has improved from previous winters, we are continuing to monitor risks and uncertainties and, if necessary, will take steps to build resilience. We and the rest of the energy industry will as always continue to prepare for a range of potential eventualities so that we are fully prepared for this coming winter.”

Once the energy regulator reapproves the renewed scheme, energy customers and businesses will be able to sign up. In previous years, households and businesses needed a smart meter to join in. This will likely remain the same this year as suppliers will analyse minute-by-minute data on your energy usage.

Your supplier must also be signed up to join. Last year, big-name suppliers such as Octopus Energy, British Gas, OVO, E.ON Next, Scottish Power, and EDF all took part. This year's registered service providers will be published on the NESO website soon and updated throughout the winter.

Each energy provider will have its own eligibility criteria to take part in the scheme, though, and how much you can earn will vary. This is because the savings are paid directly to the supplier and then passed onto you. Last year, the National Grid paid at least £3 for every kilowatt-hour saved.

The National Grid has previously reiterated that the scheme is all about reducing your energy use where you can, and they are not asking people to "go without electricity". So, instead of doing that load of washing during a DFS event, you could wait and do it the next day instead. Last year 12 DFS events were held over the winter months. However, it is still unclear how the new year-long scheme will be carried out.

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