A new way to save money on your energy bills

In our recent article Heating or Eating : Will You Have to Choose this Winter? we looked at the cost of energy, what help is available towards energy payments, and how to save money on your energy bills.

Since then, another scheme has been announced by The National Grid – The Demand Flexibility Scheme. For many households this could be another way to save money – at least £100 – on your energy bills.

In this article we take a look at the new scheme and how you can take part in it. We also explain how to get a smart meter if you don’t already have one, as this is an essential part of being able to benefit from the Demand Flexibility Scheme.

What is the Demand Flexibility Scheme?

The Demand Flexibility Service is part of an effort by The National Grid and the government to protect the UK’s energy supplies. Particularly with the vulnerability of Russian gas supply, and cold winter weather, there could be a risk of power cuts this winter.

The concept is to encourage households to plan their energy usage for off peak times, rather than during peak times such as between 4-7pm.

By using energy off peak, households can save money on their bills.

National Grid also hopes the scheme will save around two gigawatts of energy, which will help to reduce the risk of power cuts just mentioned. 

The scheme will initially run on a trial basis between November 2022 and March 2023. During this period, there will be 12 test days, four in the first month after a household has signed up, followed by two tests in each subsequent month. 

For each of these test days, customers will be given 24 hours notice to shift their power usage away from the peak period and use appliances such as dishwashers and tumble dryers outside this timeframe.

How can I take part in the Demand Flexibility Scheme?

To be able to take part in the scheme, your energy supplier needs to be participating in it, and you will also need to have a smart meter.

The first energy supplier to participate was Octopus Energy, who invited its 1.4 million eligible smart meter customers to sign up to the scheme, which it is calling the Saving Session programme. So far, around 350,000 customers have joined the programme.

Other energy suppliers are now following suit. British Gas, E.ON and EDF are now also participating in the scheme, and you can see a full list of all energy suppliers currently participating in the Demand Flexibility Scheme here.

However, not all suppliers are offering the Demand Flexibility Scheme to all smart meter customers. For example, EDF has selected a small group of customers to take part and has said that those not invited would be unable to participate.

If you want to take part in the Demand Flexibility Scheme and have not been contacted by your energy supplier, the best thing to do is either check out the current position on their website, or contact Customer Services to find out what is happening.

But, as previously mentioned, only households with smart meters will be able to take part in the scheme. So let’s take a look at how you can get a smart meter.

How can I get a smart meter?

Even without the Demand Flexibility Scheme, a smart meter can be a good idea. A smart meter is a device that will automatically track your energy usage and show you on a small display how much energy you are using and how much it is costing you. Having a smart meter won’t automatically save money on your energy bills, but it will help you to monitor your energy usage much more closely and see where you are spending more money than you expected.

Having a smart meter also means that you won’t need to take any more meter readings, as they are automatically sent to your energy supplier. And you will be charged for the energy you have actually used – no more estimated bills.

Smart meters are provided and installed free by your energy company, and the government plans to offer every home in Britain a smart meter by the end of 2025. However, it is not compulsory to have a smart meter installed when you are offered one.

Smart meters are not only for homeowners. If you rent a home but pay the bills for the gas or electricity, you can choose to have a smart meter installed. It’s best to check first with your landlord, just in case there are any rules in your contract about how energy is supplied, or the type of meter that can be installed. However, according to Ofgem, your landlord or letting agency shouldn’t unreasonably prevent you from getting a smart meter.

So if you don’t have a smart meter and want one now, the best thing to do is to get in touch with your energy supplier to request one to be installed. Even if this is not able to happen in time for the Demand Flexibility Scheme trial – particularly with Christmas coming up – you will still reap the benefits of a smart meter by early 2023.

We hope that the information in this article helps you to understand how the Demand Flexibility Scheme could help you to save money on your energy bills if you are eligible to take part in it.

Do visit us here again soon for more financial and lifestyle tips from Loans 2 Go.