Ofgem brings in new energy rules
- The Government initiative will be brought into effect next year
- It will see consumers benefit from having appliances controlled via the internet
- It could mean appliances are switched off during peak times to even out demand
- Benefits will also be offered to households using solar power
Energy firms could be allowed to switch off consumers' freezers during times of high demand as part of a new Government initiative designed to save billions in electricity bills.
Customers who opt into the scheme would be offered reduced costs if they allow a third party to power down their appliances at peak times via an internet app.Â
For example, a householder could agree for their freezers and air-conditioning to be switched off for a few minutes to balance demand at peak times, or for their washing machine to be turned on remotely to maximise use of cheap solar power during sunny periods.
The Government, regulator Ofgem and the industry are rolling out smart metres and will bring in 'smart tariffs' for consumers to pay less for off-peak power.
Benefits could be offered to a household that allows its freezer to be turned off briefly to help balance a spell of peak energy demand on the National Grid
Benefits could be offered to a household that allows its freezer to be turned off via the internet for a brief time in order to help balance a spell of peak energy demand on the national grid.
And new standards for electric vehicle charging points will see consumers charge their cars when demand is low and be paid for feeding power from cars back to t he grid.
This will essentially allow vehicles to become small mobile power plants.Â
Businesses will be encouraged to reap the benefits as well and offices that agree to turn down their air conditioning during times of high demand will be rewarded.Â
National Grid chief executive Nicola Shaw has previously claimed that up to 50 per cent of grid demand fluctuations could be smoothed out by businesses and households adjusting their energy consumption at peak times.
And it is hoped that the new initiative will maximise the use of green energy while also saving consumers up to £40bn by 2020.Â
It comes as part of a wider strategy that will see families and businesses generating, storing and selling their own electricity.
The Government hopes this will alleviate the need for expensive power s tations in the future.
The rules are tipped to support those using solar panels by making it easier for them to generate energy, store it in batteries and sell it to the national grid.
A consumer could agree to have their washing machine switched on remotely from an online source on a sunny afternoon to maximise the use of cheap solar power
Currently, solar-powered households are charged a tariff when importing energy into their homes or selling it.Â
But now the Government has vowed these tariff's will change to encourage more people to generate solar power.
Ms Shaw told the BBC: 'We are at a moment of real change in the energy industry. From a historic perspective, we created energy in big generating organisations that sent power to houses and their businesses. Now we are producing energy in those places â€" mostly with solar power.'
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