UK homes can become virtual power plants to avoid outages

A National Grid director sets out plan to reward homes and businesses for using energy outside of peak hours

• National Grid to pay households more to use off-peak power

This month we published our analysis of the British electricity system this winter. Our message is clear: in the base case our analysis indicates that supply margins are expected to be adequate, however this winter will undoubtedly be challenging. Therefore, all of us in the electricity system operator (ESO) are working round the clock to manage the system, ensure the flow of energy and do our bit to keep costs down for consumers.

One of the tools we have developed is the demand flexibility service. From November, this new capability will reward homes and businesses for shifting their electricity consumption at peak times. And we are working with the government, businesses and energy providers to encourage as high a level of take-up as possible. We are confident this innovative approach can provide at least 2 gigawatts of power - about a million homes' worth.