Centrica issued its first warning of 2025 as an Arctic blast saw Britain hammered with snow and ice – but Octopus Energy has pointed out a flaw in the system
Britain was issued a warning over “concerningly low” gas levels as the country battled its first cold period of 2025. Despite Downing Street insisting there was enough energy to get through, Centrica laid bare the situation, whereby demand had sky-rocketed, out-stripping supply. Sub-zero temperatures naturally cause more people to switch on their heating and use more energy-guzzling appliances, which can lead to strain on the grid.
The issue is not new, and during the bitterly-cold depths of winters in previous years, such warnings have been issued. But Octopus Energy has since responded to the issue, calling on the National Energy System Operator (NESO) to place some of the responsibility on households. In a release, Octopus claims £17 million was paid to two fossil fuel power plants for back-up power as the country found itself caked in snow and ice.
It said NESO didn’t call upon the Demand Flexibility Service, launched in 2023 by National Grid, which incentivises households to abstain from using some energy appliances in peak times, to reduce the strain on the grid and preserve power. Previously people who took part were offered discounts on their energy bills.
A statement from Octopus said: “The gas stations received payments of up to £5,750 per MWh of power generated between midday and 7pm. In stark contrast, households participating in Octopus’ demand flexibility scheme Saving Sessions during the same timeframe were offered just £900 per MWh – over six times less. The £17 million paid to gas peakers yesterday was £5 million more than the total amount given to households through the DFS across the whole of 2024.”
‘We need to redouble the system’
It said, despite success last winter, a “drastic reduction” in payments this year has resulted in 50% less people taking part. Increasing the rate will gain more people, and will help with soaring energy costs, it said. Greg Jackson, Founder of Octopus Energy, said: “What happened [last week] is another example of our malfunctioning energy system. Millions of pounds were added to bills in just a few hours to pay a handful of gas power plants for a modest amount of electricity. It’d have been far cheaper to pay customers who chose to use a bit less instead. This was incredibly successful last year, but has been crippled by bureaucratic wrangling. It shows we need to redouble efforts to make the system work for customers, not against them.”
In an update issued today, Britain’s gas supplies are secure, it has been confirmed, despite warnings that storage levels are were “concerningly low” levels just last week. National Grid announced on Friday that the supply situation is “healthy” and the UK is “well-placed” to meet this winter’s demands. The company highlighted that gas reserves at the UK’s storage facilities are more than half full.
