Martin Lewis has explained how people can get paid to reduce their energy usage at peak times. The money expert, speaking on his BBC podcast said that energy firms British Gas, EDF, Octopus, Scottish Power and Utilita were all using the scheme this winter.
It aims to reduce people using power hungry appliances like cookers and washing machines at peak times. If the National Grid comes under too much pressure at one time it is forced to fire up old-style gas and coal power stations, meaning much more pollution for the environment - and works by paying people to not use power at peak times.
Also if the drain is very big - for example in a cold snap when everyone has their heating on - there has even been the risk of the network coming under so much pressure there is the risk of power cuts. Mr Lewis explained: “Can you get paid to reduce your energy usage? This is the national Grid ESO initiative for England, Scotland and Wales but not Northern Ireland that is run via energy firms. They pioneered it last year and it’s back this year. The aim is to balance supply and peak demand in order to reduce the need to fire up fossil fuel plants.”
He said that anyone wanting to take part and get some money back on their bills would need to have modern meters: “To do it you’re going to need a smartmeter and it must be set up to do 30-minute readings. If you’ve got a smartmeter most of them will be able to do so.
“The firms who will pay you to cut your usage include British Gas, EDF, Octopus, Scottish Power and Utilita. Shell does it too but it’s only a prize draw that I’m not such a big fan of.”
Mr Lewis added that he looked into last year’s scheme and that he had found that people had found it successful: “I surveyed 3,000 people to see what their experiences were of doing it when it started last winter and 78 per cent of them said they had a good experience and they would recommend people doing it again.
“So it’s quite a positive thing to do although the amount of money you get isn’t big. Most people got between £5 and £20. 16 per cent of people got over £20 only three per cent of people got over £50.
“This isn’t about the money but people said they enjoyed the process and they got a feelgood factor from knowing they were doing something good for the environment and that they were trying to help protect the energy supply across the country.
“The most common thing people used to cut back was shifting the usage of their ovens and their washing machine and their tumble drier outside of peak time which is usually about 4-8pm.
“If your energy firm doesn’t have a good scheme there are some third party smartphone apps that can connect to your smartmeter and you can use that and you will still get paid - these include equiwatt, Hugo, Loo and Youtrack.“
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