Some homes could be eligible for cheaper or 'free' energy this year if they meet two requirements. It comes as the UK could soon be producing more energy than people are able to use.
Appearing on BBC Morning Live earlier this week, personal finance expert Iona Bain spoke through the headlines that seem "too good to be true". Reports have suggested that some homes could benefit from "free" electricity by putting off their energy-demanding jobs like washing laundry until the weekend, when there tends to be an energy surplus.
This excess energy plan comes ahead of the summer months, when the weather will typically be warmer, days are longer and solar power production is much higher than in the winter months. Offering energy for free prevents the energy generated from being wasted.
She said: "It is similar to schemes that we've seen before where energy companies incentivise people to use energy at off-peak times by giving [customers] discounted rates. This scheme is a little bit different, though.
"Now that we're starting to generate more renewable energy using solar and wind power, we could be making too much of it and risk overwhelming the grid. As of today [speaking on April 14], the National Energy System Operator (NESO) has announced this new scheme.
Read more: Energy bill warning to 16 million customers - check if you can claim £200
Read more: UK energy company collapses into administration after £5.4m loss – all jobs gone
"It is essentially incentivising people to use the washing machine, charge their cars and run various appliances on sunny or windy days at the weekend to try and use up some of that excess energy."
There are two requirements for homes to be eligible for this "free energy" deal. Firstly, properties must have a smart meter installed that tracks energy usage in real time, and homes also need to be served by a supplier that is taking part in the Demand Flexibility Scheme.
Iona said: "So long as you tick those two boxes, you could potentially benefit. Since energy bills are set to rise when the next price cap is announced, it could be helpful." There is a full list of available suppliers here:
NESO will tell energy companies what time in the day it wants the scheme to run. Rewards will vary, and although headlines suggest some might 'give away' this surpluss energy others may provide cheaper electricity rates at certain times, or offer customers points that could be converted into gift cards.
Deborah Petterson, NESO's director of resilience and emergency management, said: "The work of our excellent engineering teams at NESO means our energy system is well adapted to support a clean, resilient future, and puts us in a strong position to manage the changing patterns of electricity use over the summer. Tools such as the Demand Flexibility Service not only reward consumers and businesses for flexible electricity use but also strengthen the resilience and efficiency of Great Britain’s electricity network."
Jess Ralston, head of energy at the Energy & Climate Intelligence Unit, said: "Thanks to progress towards the UK’s net zero target, the deployment of renewables like solar and wind means we’re expected to be an energy exporter at times this summer. This will drive down prices to the point where consumers could get a real bargain when turning on the washing machine when it’s really sunny.
"While the price of oil and gas has been spiking due to Trump’s war in the Middle East, large windfarms lowered the wholesale power price by a third last year. Further investment will be needed, but if Britain wants to permanently insulate itself from these shocks, the shift to renewables will help do that."
Customers should check with their energy supplier whether they are enrolled in the scheme or on a compatible tariff.
