Major update on energy scheme that pays you to use electricity at night

Octopus Energy, British Gas, OVO, E.ON and EDF signed up for the scene last year

A money-saving energy scheme is set to be extended all year round. The National Grid Demand Flexibility Scheme (DFS) will be launching once again this winter.

But instead of coming to an end after the winter months, it will cover the entire year. The announcement was made today (Tuesday, October 8) in updated plans from the National Grid’s National Electricity System Operator (NESO) - which is a subsidiary of the National Grid.

SFS was introduced in 2022 to give households money, points, or prizes to reduce their electricity consumption during peak usage hours. The scheme helps reduce demand, cutting pressure on the grid and preventing potential blackouts.

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NESA said the scheme would be reintroduced this year pending Ofgem's approval, Mirror reports. Last year, 2.2million households and businesses signed up, along with 43 providers.

The changes mean that customers will be able to take part throughout the year instead of just over the winter months. NESO said the change is due to a low risk of blackouts this winter.

It means that it no longer needs to be used as an 'emergency contingency plan'. Instead, NESA says it expects power plants, wind farms and other generation methods to provide more than enough power to meet demand.

The scheme has also been redesigned so NESO can keep managing its margins - which is the difference between the supply of electricity and demand for it all year round. Craig Dyke, director of system operations at NESO, said: "As we publish our first Winter Outlook as the National Energy System Operator, it is positive to see that margins forecast for this winter are the highest since 2019/20.

"While our margin assessment has improved from previous winters, we are continuing to monitor risks and uncertainties and, if necessary, will take steps to build resilience. We and the rest of the energy industry will as always continue to prepare for a range of potential eventualities so that we are fully prepared for this coming winter."

Customers and businesses will be able to sign up once the energy regulator reapproves the renewed scheme. In previous years, households and businesses needed a smart meter to join.

This will likely remain the same as suppliers will analyse minute-by-minute data on your energy usage. Your supplier must also be signed up to join.

Last year, Octopus Energy, British Gas, OVO, E.ON Next, Scottish Power, and EDF took part. This year's registered service providers will be published on the NESO website soon and updated throughout the winter.

Each energy provider will have its own eligibility criteria to take part in the scheme which means that how much you can earn will vary. This is because the savings are paid directly to the supplier and then passed onto you.

Last year, the National Grid paid at least £3 for every kilowatt-hour saved. The National Grid has previously said that the scheme is about reducing your energy use where you can.

It is not asking people to 'go without electricity'. So, instead of doing your washing during a DFS event, you could wait and do it the next day.

Last year, 12 DFS events were held over the winter months. But it is unclear how the new year-long scheme will be carried out.