Huge boost for millions as energy bills could go down as money saving scheme extended all year round

MILLIONS could save money on their bills this winter as an energy scheme is set to be extended all year round.

The National Grid’s “Demand Flexibility Service” (DFS) is due to return this year.

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But, for the first time since the scheme’s introduction in 2022, the scheme will now throughout the year.

The DFS is designed to reduce pressure on the energy network.

Under the service, households who use less electricity than they normally do during certain allotted hours are paid for the savings.

Last year, 2.2million businesses and households signed up, along with 43 providers,

National Grid’s National Electricity System Operator (NESO), a subsidiary of the operator, has confirmed that the scheme will be starting again during the colder months – pending Ofgem approval.

But, this year the DFS has been tweaked and will instead be used throughout the year instead of just during the winter months.

This won’t make a difference to how customers use the scheme, it just means they will be able to participate as often as they’d like across the year, rather than just during winter.

NESO said the change is due to a low risk of blackouts this winter, which is what it was originally designed to combat.

It means it no longer needs to be used as an emergency contingency plan because Britain is less likely to lose power this winter than last year,

NESO 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 DFS has 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.”

The changes to the scheme mean that homes and businesses across Great Britain will again be able to earn pounds, points or prizes across the period by shifting their energy usage outside of allotted periods.

Once approved, customers and businesses will be able to sign up to participate in this year’s Demand Flexibility Service in the coming months, following regulatory approval from Ofgem. 

In previous years you were only able to take part in the service if you have a smart meter – and your supplier will need to have signed up to the scheme.

Participating households could be paid to put on their dishwashers or charge their electric cars during off-peak hours.

Those looking to cash in from possible events are encouraged to turn expensive appliances off rather than sit in the dark.

This is because you won’t make as much of a saving by just switching your lights off.

Households must have signed up through their supplier, otherwise, they won’t be able to take part.

In 2023/24, big-name firms took part in the DFS including Octopus Energy, British Gas, OVO and EDF.

It ran 12 test events where households could make the savings, its unclear as yet how the rejigged scheme will be carried out.

In its first year, the DFS was originally trialled with Octopus Energy, and other suppliers then joined, these included British Gas, EDF, E.On, Ovo Energy, and Shell Energy.

Sun Money has contacted all the major energy firms to see if they can shed any light on how they will carry out the scheme all year round and what they will offer.

Each energy provider will have its own eligibility criteria to take part in the scheme though and how much you can earn will vary.

Last year, National Grid paid at least £3 for every kilowatt-hour saved during six of the 12 tests.

The cash is paid to the suppliers, which will likely retain a portion to cover administrative costs and make a profit.

The amount you get will depend on what your supplier offers, and not every firm will participate.

A list of this year’s registered service providers will be published on the NESO website soon and then updated throughout the winter.

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