‘Pay people, not power plants’ to help grid, says Octopus Energy
‘Pay people, not power plants’ to help grid, says Octopus Energy
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Published on 13 January 2025
More than £17m was paid to two fossil fuel power plants
Households received £900 per MWh
This is less than six times the amount
More than £17m was paid to two fossil fuel power plants
Octopus Energy has called on the National Energy System Operator (NESO) to pay households to shift their energy usage away from peak times to reduce the burden on the National Grid instead of turning on polluting fossil fuel plants.
The energy provider said NESO paid more than £17m to two fossil fuel power plants for backup power amid a cold weather snap last week instead of calling on the Demand Flexibility Service (DFS).
The service acts as an enhanced action, in addition to the normal electricity market, that is to be used to access additional megawatts (MW) during times of high national demand, particularly on days when the system could have been placed under stress.
Petrol stations received payments of up to £5,570 per MWh of power between 12pm and 7pm.
Greg Jackson, founder of Octopus Energy, said in contrast, households participating in its owner DFS, ‘Saving Sessions’ during the same time period were offered just £900 per MWh.
“‘Saving Sessions’ allow customers to get paid for shifting their energy use out of times of peak demand, helping to balance the grid,” Jackson added.
He explained that by increasing the rate offered to households, more customers would be encouraged to take part in the scheme, “dramatically lowering balancing costs that are paid for by all billpayers”.
Last winter, people received £2,850 per MWh shifted, on average, but the reduction in payments has seen participating households drop by 50%.
“Millions of pounds were added to bills in just a few hours to pay a handful of gas power plants for a modest amount of electricity,” Jackson claimed.
“It’d have been far cheaper to pay customers who chose to use a bit less instead. This was incredibly successful last year, but has been crippled by bureaucratic wrangling.
“Yesterday shows we need to redouble efforts to make the system work for customers, not against them.”
Written by
Tamara BirchSenior Writer
Tamara is a London-based journalist and has written about environmental topics for more than four years. This includes advising small business owners on cost-effective ways, like solar panels and energy-efficient products, to help them become more sustainable.
She has used her journalist and research skills to become highly knowledgeable on sustainable initiatives, issues, and solutions to help consumers do their bit for the environment - all while reducing monthly costs.
In addition to adopting sustainable practices in her personal life, Tamara has worked in the retail B2B space to help independent retailers think about their environmental choices and how they can help improve their business. She now uses this knowledge to help consumers do the same.
Her passion for sustainability and eco-friendly solutions stems from a long obsession with nature and animals and ensuring they feel looked after. In her free time, Tamara enjoys reading fantasy novels, visiting the gym, and going on long walks in new areas.
You can get in touch with Tamara via email at tamara.birch@mvfglobal.com.
Max joined The Eco Experts as content manager in February 2024. He has written about sustainability issues across numerous industries, including maritime, supply chain, finance, mining, and retail. He has also written extensively for consumer titles like City AM, The Morning Star, and The Daily Express.
In 2020, he covered in detail the International Maritime Organisation’s (IMO) legislation on sulphur emissions and its effects on the global container shipping market as online editor of Port Technology International.
He also explored the initiatives major container ports and terminals have launched in order to ship vital goods across the world without polluting the environment.
Since then, he has reported heavily on the impact made by environmental, social, and governance (ESG) practices on the supply chain of minerals, with a particular focus on rare earth mining in Africa.
As part of this, in 2022 Max visited mines and ports in Angola to hone in on the challenges being faced by one of the world’s biggest producers of rare earth minerals.
His most recent sustainability-related work came much closer to home, as he investigated the eco-challenges faced by independent retailers in the UK, specifically looking at how they can cut emissions and continue to thrive.
Max lives in South London and is an avid reader of books on modern history and ghost stories. He has also recently learned to play the game Mahjong and takes every opportunity to do so. He is also yet to find a sport he doesn’t enjoy watching.
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