Octopus customers receive £1m in flexibility payments

Octopus Energy has paid out £1 million to a quarter of a million of its customers who reduced their electricity consumption as part of National Grid Electricity System Operator (ESO)’s new demand flexibility service.

During each of the company’s first four hour-long ‘Saving Sessions’ Octopus customers lowered the energy demand on the grid by more than 100MW, resulting in a total of almost 450MWh of consumption being moved out of peak times so far this winter.

On average participating customers saved more than £4 across each of the first four sessions, with the top 5% of savers bringing in almost £20. These payments were made in the form of ‘Octopoints’ which can be exchanged for energy account credit or cash.

Octopus added that it will be launching another ‘Saving Session’ on Monday (12 December) between 5pm and 7pm.

Alex Schoch, head of flexibility at Octopus Energy Group, said: “This is a massive milestone – across just four hours, we’ve been able to pay out £1 million to our customers. Normally, this money would have gone to businesses or dirty gas power plants to balance energy demand, instead it’s helping people lower their energy bills this winter.

“We are proud to have pioneered this trailblazing scheme, which is paving the way towards a smarter, greener and cheaper grid for all. And we’re glad that other energy suppliers are now getting involved, allowing even more people to grab a bargain and lower bills for everyone.”

Octopus is one of a number of energy suppliers taking part in the ESO’s service. Others include British Gas, Ovo, Shell Energy and Eon.

The scheme was given the green light last month and will run until the end of March next year.

The ESO estimates a typical household could save approximately £100 by participating in the scheme, with industrial and commercial customers potentially getting back multiples of this.