
Image credit: Unsplash/Arthur Lambillotte
Quick Links: ▶︎ What is a DFS event? ▶︎ The change to the DFS energy scheme in 2024 ▶︎ How long do the DFS events go on for? ▶︎ How much can I earn? ▶︎ Which energy providers are taking part? ▶︎ How will you know when to turn off appliances? ▶︎ Equiwatt
The National Grid DFS Scheme will now run all year
A nationwide energy-saving scheme that pays households to use less energy at peak times over winter, meaning that you can be paid for turning off appliances in your home at specific times, has been extended all year round, as of November 27th, 2024. This means you may now be able to cash in for not using your electricity throughout the year, not just during the winter!
Participants can earn money, vouchers, or credits on their electricity bills for reducing consumption during DFS events.
What is a DFS event?
The Demand Flexibility Service (DFS) scheme, which is an initiative from the government-owned “National Energy System Operator” (NESO): the Demand Flexibility Service, incentivises households to reduce their energy consumption during peak times when energy demand is high. By doing so, they help alleviate pressure on the power grid and prevent power cuts or blackouts.
The DFS operates as a system that rewards households who opt to lower their energy usage during periods of network strain. These households often receive financial incentives, such as discounts on their energy bills, for their participation. Over the past two years, the program has seen over 2.6 million homes and businesses participate, resulting in an estimated 7,000MWh of electricity saved during peak times.
The updated version of the service introduces several notable changes. Notably, the Demand Flexibility Service (DFS) will now operate year-round, rather than just during the winter months as in previous years. This expansion aligns the DFS with the broader electricity market.
How does it work and how long do the DFS events go on for?
If you register for the DFS events via your energy provider and have a smart meter, you'll be told about each event by an app notification or email from your provider. This will tell you what time to turn off your devices and start saving. This is normally the day before the event takes place, but could be the same day if energy demand is high.
You'll need to manually turn off your equipment, unless you are using an app where you can turn them off via your device. If you are using the Equiwatt app and a compatible smart device, it will turn off your devices automatically for you and then turn them back on from you once the event has finished.
Each of these tests will run for one hour, during which time participants in the scheme are encouraged to turn off as many appliances as possible in their homes to reduce the amount of energy the household uses.
How much can I earn?
As a thank you, the DFS will pay households to save money, the downside to this new scheme is that they have reduced the reward you receive by ~90%. Where previously, you were paid, typically, £2.25 per unit you saved, it would be more like 22p per unit instead, which is a bit dissapointing, but its still better than nothing!
During the 2023 winter sessions, I saved 2 gigawatts of power and as much CO2 as 216,000 adult trees would absorb in a year, and that's after missing a couple of the sessions. I earned £18 in credit from DFS partner Octopus. I suspect that with the lower rates, I'll be lucky to save that much going forward.
Who can take part?
You need to be a household with a smart meter or a business site with half-hourly metering to sign up, either your retail energy supplier or online providers/apps who are participating in the service or third-party providers as either money, prizes or bill credits.
Which energy providers are taking part?
Axle Energy Ltd British Gas Chameleon Technology (as Ivie) Easee UK Ltd (via Axle Energy Ltd) EDF E.ON Next Energy Ltd Equiwatt GivEnergy Software (via Axle Energy Ltd) 100 Green (via SMS – Solo Energy Ltd) Hildebrand Technology Ltd Hugo Energy App (via SMS - Solo Energy Ltd) Loop(via SMS - Solo Energy Ltd) Octopus Energy Ohme (via Axle Energy Ltd) OVO Energy Perse Technology Ltd Power Rewards App (via Orange Power Ltd) Scottish Power (via Equiwatt) SMS (Solo Energy Ltd) Shell Energy Retail via SMS (Solo Energy Ltd) Uswitch Ltd (via Hildebrand) Utilita Energy Ltd
You can only sign up for the Demand Response Scheme (DFS) if you have a smart meter or an electronic device that measures your electricity usage. This is because the amount of energy you save during these hour-long events is calculated based on your smart meter readings.
The energy provider will collect 60 days of your energy usage data from your smart meter and use it to estimate your average daily energy consumption. This figure will serve as your baseline energy usage. By turning off your electrical equipment and conserving energy during the DFS event, the energy provider can calculate the difference between your typical usage during that hour and your actual usage during the event. You will then be rewarded for the energy you saved.
For instance, if you typically use 2KWh of energy and only use 1KWh during the DFS event, you will be rewarded for your 1KWh energy savings. If you don’t save any energy during the event, you won’t receive any compensation. However, if you use more energy than usual, which may occur if you need to use appliances during the event, you won’t incur any additional charges; you simply won’t earn any money.
During the 2022 winter, a total of £11 million was distributed to the 1.6 million participants in the scheme.
What should I turn off?
Turning off high-energy devices makes sense, but even turning off small appliances can make a difference. Items such as game consoles use more electricity than you might think. Putting the TV, DVD player, etc., on standby will also save. If you need a hot drink, only boil the exact amount of water you need.
You can see more energy-saving tips on the blog here.
Certain apps, such as Equiwatt, can talk to smart devices, such as smart power sockets and will automatically turn these smart plugs on and off for you, which is very handy.
Equiwatt
An app I've spoken about many times previously is Equiwatt. They are one of the partners of the DFS service, and you can use them to perform your DFS events. It is worth noting that you can only use one provider for your DFS events, so if, like me, you use Octopus as your energy provider and also make use of the Equiwatt service, you have to choose which service to register with for DFS events, as you can only use one!
I've stuck with Octopus this year as it is easier for me as all my energy information is within the Octopus app, but if your energy provider isn't taking part in DFS events and you have a smart meter, then use Equiwatt as you don't then miss out of saving money.
Equiwatt awards you points for taking part in DFS events, plus extra events they run separately, called Equivents, which run throughout the year, not just in the winter, and you can trade those points in for the prizes below:
Once you have 1,000 points, you can cash them out for a gift card. 1,000 points is equal to a £10 gift card.
You can learn more about Equiwatt on the blog here.