Money Matters: Earn money by reducing your energy use

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In this week's Money Matters column, Wrekin's Debt & Energy Manager Dan Bebbington explains how you can earn money by reducing your energy use.

Figures released this week show that nearly eight million people are struggling to pay their bills due to the rising cost of living.

The Financial Conduct Authority estimates that 7.8 million people across the UK are currently finding bills a “heavy burden” - a significant rise from 5.3 million in 2020.

However, whilst these figures are concerning, there are an increasing number of initiatives being launched to help ease some of the pressures.

Energy suppliers British Gas, Octopus and Ovo have recently announced schemes which will see households offered payments to reduce how much electricity they use during peak times this winter.

The aim is to prevent power shortages during a period when energy supplies in the UK could come under pressure.

The full details have yet to be announced, but British Gas is understood to be planning a trial later this year.

It’s been suggested that customers will likely be asked to cut their usage between 4pm and 7pm by around 30 per cent.

The company hasn’t revealed how much it will pay. However, it forms part of a wider initiative by the National Grid Electricity System Operator, which said it expects to pay suppliers the equivalent of £3 per unit (kWh) saved.

It will be up to individual suppliers to decide how much of that money they pass on.

Octopus Energy’s “Savings Sessions” scheme is expected to launch at the start of November, running until the end of March next year.

Participants will be contacted ahead of time to advise when to use less electricity to earn money. It’s thought the evening peak between 4.30pm and 6.30pm will be included.

Octopus has indicated it will pay customers £4 per unit (kWh) of electricity saved, with the amount you earn depending on your usage.

It’s unknown exactly how much you could receive, but the company said it could be approximately £100.

Meanwhile, Ovo’s “Power Move” scheme will run for the same period and customers will be requested to reduce energy use between 4pm and 7pm.

The company is offering participants a flat reward of £20 each month if you hit the target, up to a total of £100.

For each of these schemes, you’re likely to receive payment directly to your electricity account as a credit.

These initiatives are only open to people with smart meters because the devices are able to send readings to your supplier every half hour to monitor usage.

Other energy firms are expected to follow suit so keep an eye out to see if your supplier has signed up.

3rd November 2022