Households could be paid up to £100 to use less energy from today

Some households around the UK may be eligible to receive a payment to use less energy during peak hours from today.

Up to a million households and businesses fitted with smart meters across England, Scotland and Wales will be paid to use less electricity in a bid to avoid blackouts.

The National Grid scheme, from a number of suppliers, is set to take place between 5 and 6pm this evening and those who have signed up will see discounts on their bills if they do things like delay using their oven or washing machine.

While temperatures have plummeted over the winter months, energy use across the UK has risen as more people are turning their heating on.

National Grid also has three coal-fired generators on standby in case supplies run low. Although, the energy supply operator has said that these measures are merely ‘precautionary’ and that people should not be ‘worried’.

It will make a decision later as to whether the scheme will also need to be put into place tomorrow.

Business Secretary, Grant Shapps, pledged to crack down on the mistreatment of energy users by suppliers, following reports showing some aren’t doing enough to support vulnerable customers.

 As part of this he committed to publishing a list of supplier redemption rates for Energy Bills Support Scheme vouchers – showing who is meeting their responsibilities and who needs to do more, saying: “The public have a right to know which suppliers are leading the charge with getting this help to them, and that’s why I’m holding energy companies to account to make sure they are doing everything they can to support their customers at this time.

“We’re ramping up efforts so consumers know exactly what they need to do to redeem these vouchers, but we need suppliers to do much more and I want to see these numbers rise.”

According to National Grid, to check whether your household is eligible, you need to find out if your supplier is one of the 26 that has signed up to the scheme. Only people in England, Scotland and Wales who have a smart meter are eligible.

You should also get a notification from your supplier that it starts today and asked to reduce your usage.

Customers will receive a discount if they reduce their electricity use between the times set by National Grid. On Monday the scheme will run between 5 and 6pm GMT.

You can save energy by doing things like delaying using your oven, washing machine or charging your electric vehicle. National Grid says savings can range from a few pounds to as much as £20 depending on the amount used.

The energy supply operator has said it expects to pay suppliers the equivalent of £3 per unit (kWh) saved, but suppliers are able to choose whether to pass on the full amount (or pay more). The exact amount you’ll receive will vary depending on your usage and the number of times you’re prompted to cut your usage over the winter. 

The scheme was introduced last year and is scheduled to run until March.