British regulator clears plan to pay homes to use less power this winter

British energy regulator Ofgem has approved plans to pay homes to cut electricity use and help prevent power shortages this winter, it said on Friday.

Under the demand flexibility service (DFS), homes that are signed up with their suppliers are paid, usually via discounts on their bills, for turning off appliances such as ovens and dishwashers during a specific period when electricity demand is high.

In a separate announcement National Grid’s Electricity System Operator (ESO) said the service would be available from October 30 and that it will shortly publish a list of registered suppliers signed up to the scheme.

Some 1.6 million UK homes joined the service last winter, saving over 3,300 megawatt hours (MWh) of electricity, or enough to power around 10 million homes, ESO previously said.

The United Kingdom is heavily reliant on gas to produce electricity, with gas-fired power stations generating more than 40% of the country’s electricity. It also imports electricity from Continental Europe.

The National Grid — which is responsible for keeping the lights on in England, Scotland and Wales – had said last year that Russia’s invasion of Ukraine had created “unprecedented turmoil and volatility” in the energy markets.

Gas flows from Russia to Europe have been all but cut off, leaving countries scrambling for alternative supplies.

Although Britain is far less reliant on Russian gas than mainland Europe, it still suffers trickle down effects from any shortfalls in supplies on the continent, National Grid had then said.