British Gas is offering customers a little-known scheme that pays them to reduce electricity usage during peak hours. The initiative, known as the Demand Flexibility Service, is run in partnership with the National Grid Electricity System Operator (ESO) and is designed to lower energy bills while making the grid more sustainable.
Under the scheme, customers can earn money or bill credits by shifting their electricity consumption to off-peak times, such as overnight, weekends, or during holiday periods when grid demand is lower. British Gas states: 'Using electricity at night to charge your electric vehicle or run Economy 7 storage heaters can be cheaper with time-of-use, or off-peak electricity rates and tariffs.'
How the Scheme Works
The Demand Flexibility Service is activated when the ESO anticipates high demand. Energy suppliers like British Gas then notify customers to reduce usage during specific peak windows. Customers who cut consumption compared to their normal patterns receive financial rewards, typically around £3 to £5 per kilowatt-hour saved, depending on the event.
Off-peak hours vary by supplier and location. For British Gas customers on Economy 7 tariffs, the cheaper night rate runs for 7 hours between midnight and 8am. The company emphasizes that shifting energy-intensive tasks like laundry or dishwashing to these hours can yield significant savings.
Environmental and Financial Benefits
The ESO is responsible for balancing electricity supply and demand across Great Britain. When demand spikes, fossil fuel power plants are switched on, which is both expensive and environmentally damaging. The Demand Flexibility Service reduces the need for these plants, lowering carbon emissions and helping stabilise bills for all consumers.
'Using less power at peak times helps maintain a steady supply and reduces our collective carbon footprint,' a British Gas representative noted. The scheme is part of a broader push by UK energy firms to encourage flexible consumption and integrate more renewable energy sources.
Customer Participation and Rewards
To join, customers need a smart meter and must sign up via their energy supplier. British Gas has enrolled thousands of homes, with participants earning an average of £10-£20 per winter season from occasional events. The savings can be taken as cash, bill credits, or donated to charity.
The initiative is one of several time-of-use tariffs available, including Economy 7 and newer smart tariffs that offer off-peak rates for electric vehicle charging. British Gas rivals such as EDF, EON, Ovo, and Octopus Energy also offer similar schemes, but the payment-for-flexibility approach is less widely advertised.
Broader Impact on Energy Grid
The ESO aims to reduce peak demand by 1-2 gigawatts annually through flexibility services. This not only cuts carbon but also delays the need for new power plants and grid upgrades. For consumers, the message is clear: shifting usage to off-peak hours can save money and help the environment.
British Gas advises checking individual supplier details for off-peak timing and eligibility. The scheme typically runs from November to March, but occasional summer events may occur during heatwaves. Customers are encouraged to participate in as many events as possible to maximise rewards.
