Many suppliers have already introduced schemes that reward customers for shifting electricity use
Millions of households could increasingly be paid to run their homes differently – for example, by using the dishwasher at a different time. It can mean switching off at peak times or even using more electricity when there is an excessive supply of renewable power.
The National Energy System Operator (NESO) has already paid out almost £778,000 since mid-April to encourage households and businesses to cut electricity use when the grid has come under pressure. Consumers reduced demand by 4,739 megawatt hours (MWh) – enough electricity to power around 693,000 homes for a day – with payments channelled through suppliers including Octopus Energy, which then reward participating customers.
The figures, revealed by the Financial Times, underline a major shift in how Britain’s electricity system is being run as wind and solar generate a growing share of power.
Rather than relying solely on gas-fired power stations to meet surges in demand, households are increasingly being treated as a flexible part of the grid – earning rewards for delaying washing, cooking or charging electric cars until a more convenient time. And experts say these schemes are only likely to become more common.
Earlier this year, regulator Ofgem approved a major overhaul of NESO’s Demand Flexibility Service, allowing it to operate year-round and making it easier for suppliers to reward customers both for reducing demand at busy periods and, for the first time, using more power when renewable electricity is plentiful.
The changes also mean households could potentially be asked to take part several times in a single day.
The service had already moved from being a winter emergency measure to a permanent, year-round balancing tool in late 2024, reflecting the growing challenge of managing an electricity network dominated by intermittent wind and solar generation.
On July 9, during soaring temperatures, NESO paid £47,288 to encourage consumers to reduce demand between 5pm and 11pm, cutting electricity use by 233MWh as the system came under strain.
Energy firms already paying customers
Many suppliers have already introduced schemes that reward customers for shifting electricity use. Octopus Energy has become the best-known, running Saving Sessions, where customers earn points or bill credits for reducing electricity use during peak periods.
It also operates Free Electricity Sessions and regional Power-Ups, giving eligible customers periods of free electricity when local renewable generation exceeds demand, encouraging them to charge electric cars, run washing machines or heat water at no cost.
Customers on Octopus Agile can also benefit when wholesale electricity prices collapse, with tariffs occasionally falling to zero or even negative prices.
Meanwhile, EDF has offered Sunday Saver promotions, rewarding households for moving electricity use away from peak periods, while several suppliers now offer smart tariffs linked to electric vehicle charging or heat pumps that automatically take advantage of cheaper electricity.
Industry experts believe these incentives are likely to become a much more familiar feature of household energy bills. NESO said more than 2.46 million homes and businesses have already signed up to participate in its Demand Flexibility Service through energy suppliers and third-party providers.
A NESO spokesman said: “Flexibility is becoming an increasingly important part of running Britain’s electricity system.”
The operator says households are showing they are willing to play a direct role in balancing the grid by changing when they use electricity. The shift reflects the Government’s ambition to decarbonise Britain’s electricity system, but also the practical challenge of coping with huge swings in renewable generation.
On bright sunny weekends or particularly windy days, Britain can have more electricity than it needs, while still facing shortages on calm evenings when demand peaks. Instead of paying wind farms to switch off or firing up expensive gas generators, it is increasingly cheaper to persuade consumers to change their behaviour.
For households, that could mean earning cash simply by waiting an hour to put the dishwasher on – or being rewarded for charging an electric vehicle when clean electricity is abundant rather than scarce.
