National Grid money-off energy scheme launched today could save households £100

The National Grid has introduced a new off-peak money-off energy scheme called the Demand Flexibility Service (DFS), where certain suppliers will give households discounts on their electricity bills if they cut energy usage during peak times. 

As well as helping people’s efforts to save energy at home and money, the scheme is part of National Grid’s efforts to avoid blackouts this winter, which they’ve previously described would only occur as a ‘worse-case scenario’ if electricity supplies are impacted. The scheme launched at the start of November and is currently scheduled to run until March 2023.

Close up of the varied large lightbulbs suspended above the kitchen island from the vaulted ceiling

(Image credit: Future PLC)

National Grid has reported that ‘a typical household could save approximately £100’ this winter by simply reducing their power consumption at certain times during the following months. 

In order to participate in the scheme, all you need is a smart meter. You should also ensure that your energy supplier offers the service, as the scheme will be managed by each respective household’s supplier. 

If you tick those boxes but haven’t already yet opted-in to the scheme, we suggest you do so soon so you can start cutting costs on your energy bills as soon as possible.

smart meter on table with pot plant

(Image credit: Smart Energy GB)

What is the Demand Flexibility Service?

The Demand Flexibility Service (DFS) is a new service that will help National Grid avoid using its emergency services if electricity supplies are impacted this winter. They are expected to run a maximum of 12 demonstration tests with each electricity supplier and aggregator between the months of November 2022 and March 2023.

How can I take part in the scheme?

All you need in order to take part in the scheme is a participating supplier and a smart meter. National Grid plans to list all the participating providers on the ESO website (opens in new tab) soon and will be updated as new providers join the DFS.

Once you’ve signed up to take part in the scheme, your electricity provider will contact you before a demonstration test or live event and will ask if you want to participate in the following day’s event with at least 24 hours notice.

If you sign up to DFS you will need to authorise your provider to access your smart meter so they can read your data every half-hour for the duration of the service.

smart meter on kitchen shelf

(Image credit: Smart Energy GB)

What happens during DFS events?

If you’ve decided to participate in the demonstration event or live event, all you will be expected to do during the time period is to reduce your electricity usage. Your energy supplier will confirm how much you’ll be asked to reduce your usage.

No, you will not be asked to sit in the dark and do nothing – however, National Grid suggests rethinking the usage of ‘power-hungry appliances such as washing machines, clothes dryers, dishwashers, electric showers and immersion heaters’ during this time period. This could be a good time for you to whip out your best energy-saving products.

washing machine and dryer in laundry room with storage

(Image credit: Future PLC)

How long will DFS events last?

DFS demonstration tests are expected to last for one hour and will be run during weekdays, likely during the evenings, however, your energy supplier will relay the specific details of these events to you.

The scheme will run from 1st November 2022 to 31st March 2023.

How much could I save by participating in the scheme?

National Grid has confirmed that ‘these demonstration tests will have a guaranteed minimum price of £3KWh, meaning that a typical household could save approximately £100 across the maximum 12 demonstration tests.’

Exactly how much you save will all be down to your respective energy supplier, so make sure you’re keeping an eye out when they wish to contact you.

What happens if I sign up to an event and do not reduce my energy consumption?

If you’ve signed up for a DFS event but for any reason are unable to participate when the time comes, you will simply pay for your energy usage as usual – there are no further implications.

There are no penalties for not participating in an event, however, you will not be eligible for incentives on those days.

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