Households and businesses may now access discounted or complimentary electricity from their energy providers when operating appliances during times of abundant supply
The National Energy System Operator (NESO) has introduced a revised Demand Flexibility Service, which allows consumers to benefit from reduced energy costs during periods of surplus power. This change, approved by the industry regulator Ofgem at the end of March, aims to enhance the reliability of the energy grid during the summer months and prevent excess electricity from going unused.
Traditionally, energy companies have incentivized customers to shift their usage away from peak hours, such as offering lower rates for off-peak consumption. However, the updated initiative now enables providers to encourage higher appliance use during times when supply exceeds demand, particularly when favorable weather conditions boost renewable generation. For instance, sunny weekends and Bank Holidays may see increased opportunities for cost-effective energy use.
Electricity demand typically declines in summer due to warmer temperatures and longer days, while solar power output rises. NESO’s research highlights that weather patterns are increasingly shaping low-demand periods, and the proliferation of smaller, local generators is further reducing dependence on large-scale power stations. As a result, surplus energy is becoming more frequent, creating a need for flexible consumer engagement.
Eligible participants include households with smart meters, provided their energy suppliers are part of the program. Rewards for using appliances like washing machines, dishwashers, or electric vehicles during low-demand, high-green-generation times will be determined by the companies and may include discounted rates or points redeemable for gift cards.
Currently, British Gas, Equiwatt, and Octopus Energy have joined the scheme. NESO emphasized that managing the grid during low-demand periods is growing more complex, stating:
“The complexity of operating the system at low demand is increasing, and we may need to use more of our tools, and use them more often, than in previous summers.” This could involve sending rare notifications to power stations to adjust output for safety during periods of minimal demand.
