The Demand Flexibility Service (DFS), where users reduce power consumption for a given period, will help the ESO avoid having to trigger emergency responses to demand outstripping supply, such as restarting mothballed coal-fired plants.
Ofgem approved the scheme on 4 November, meaning businesses and the public will be paid for the first time to reduce or move their electricity usage outside of peak hours.
The ESO will run a maximum of 12 demonstration tests of the scheme even if energy supplies are unaffected by the crisis.
ESO claimed that the average household could save around £100 across the 12 tests. Businesses could stand to save much more, and will be able to sign up through their electricity supplier, or through an aggregator if they work with one already.
It said: “If we can reduce demand by rewarding participating customers to turn down when we need them to, it means we might not have to bring on expensive and polluting fossil fuel generators.
“This saves carbon and also saves all consumers money. And in times of system stress, when margins are tight, it could help us avoid an emergency response.”
In each DFS test or event, suppliers will give 24 hours’ notice of a period in which customers should reduce electricity usage by not using their most power-hungry appliances. For households, this includes washing machines, dryers, dishwashers or immersion heaters.
Power-hungry devices for printing companies include litho presses, driers and compressors.
Test events will run for a maximum of an hour, though ‘live’ events could run for longer, according to ESO.
The DFS comes in the context of a Europe-wide shortage of natural gas, commonly used for electricity generation, following Russia’s invasion of Ukraine.
On Saturday 29 October, British Gas issued a warning that Britain’s stockpiles amount to just nine days’ worth of gas, far below the level of other nations. At the time of the announcement, France had more than 100 days of gas left; Germany had 89.
ESO said it would pay energy suppliers, who will have to opt into the service, £3 per kWh during the test periods.
Suppliers themselves will be responsible for deciding how much customers receive, and in what manner the money is credited or given to them.
Customers will be required to have installed a smart meter to take part in the scheme.
