Tue, 14 Apr 2026
Providers can encourage people to use energy when "weather conditions result in excess supply".
The UK's National Energy System Operator (NESO) has introduced an updated Demand Flexibility Scheme that allows households and businesses to receive free or cheaper electricity from their energy company during periods of excess supply, such as sunny weekends. The scheme is designed to encourage people to increase usage when "weather conditions result in excess supply", which is becoming increasingly common due to the growth of renewable energy sources like wind and solar power.
The updated scheme will enable customers with smart meters whose suppliers are participating to be rewarded for running appliances such as washing machines, dishwashers, and electric vehicles during periods of low demand. Rewards can vary and may include free or cheaper electricity at certain times, points that can be converted into gift cards, or other incentives.
The scheme is open to households in Britain with a smart meter, and energy companies like British Gas, Equiwatt, and Octopus Energy have already signed up to participate. The NESO will inform energy companies about the time of day when they want the scheme to run, and pay them if they are able to ramp up or reduce demand for that period.
The changes aim to ensure that the system is resilient over the summer, avoid surplus power being wasted, and promote the use of renewable energy. Renewable energy produced a record amount of electricity in Great Britain last year, with wind being the biggest single renewable source, and solar-powered electricity rising by nearly a third on 2024 levels.
The updated scheme can vary by area, so customers in one part of the country may be encouraged to increase usage while others in a different location are incentivized to curb consumption. The NESO said it is exploring how the Demand Flexibility Scheme will work in practice with participating companies.
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