Octopus Energy says around 1.8 million of its smart energy customers helped support the UK electricity grid during the recent heatwave by shifting electricity consumption away from peak demand periods.
The company announced its second Saving Session of the week, encouraging participating households to reduce electricity use between 7:30pm and 8:30pm in exchange for financial rewards based on the amount of energy they saved.
According to Octopus Energy, the initiative forms part of a broader strategy to use customer flexibility and connected technologies to help balance electricity supply and demand during periods of network stress.
Demand response during extreme weather
The recent heatwave increased electricity demand as higher temperatures drove greater cooling requirements while unexpected outages at conventional power stations reduced available generation capacity.
Demand response programmes encourage consumers to temporarily reduce or shift electricity consumption during periods of high demand, helping electricity system operators maintain network stability.
Octopus said approximately 1.4 million customers on its smart tariffs are already shifting electricity demand through automated or time-based pricing arrangements.
Connected devices support grid flexibility
The company estimates that its network of around 440,000 connected electric vehicles and residential battery systems could shift up to 4.5 gigawatt hours of electricity demand away from peak periods.
Smart charging technologies automatically schedule electricity consumption during times when demand is lower or renewable energy generation is higher, reducing pressure on the electricity network.
Growing role for flexible energy systems
As electricity systems incorporate increasing amounts of renewable generation, flexibility technologies are becoming an important tool for balancing supply and demand.
Rather than relying solely on additional generation capacity or new network infrastructure, demand-side response enables consumers to play a more active role in supporting grid stability.
Calls for wider market reform
Octopus Energy is encouraging policymakers, regulators and the National Energy System Operator to make greater use of flexible demand programmes and develop market arrangements that reward consumers for supporting grid resilience.
The company said it has paid almost £6 million to customers through its Saving Sessions programme since its launch, while smart tariff customers have collectively reduced their electricity costs by shifting consumption away from peak periods.
Frequently Asked Questions
What are Saving Sessions?
Saving Sessions are demand response events where customers are rewarded for reducing electricity use during periods of peak demand.
Why was the programme used during summer?
High temperatures increased electricity demand while generation outages reduced available supply, creating additional pressure on the grid.
How do smart tariffs help?
Smart tariffs encourage or automatically shift electricity use to periods when demand is lower or renewable generation is more abundant.
What technologies support demand flexibility?
Electric vehicles, home battery storage systems and smart charging technologies can all help move electricity demand away from peak periods.
Why is grid flexibility important?
Demand flexibility helps improve grid resilience, supports renewable energy integration and can reduce the need for additional electricity infrastructure.
Further information is available from Octopus Energy.
