Free or Cheaper Electricity for Using Appliances During Excess Supply
Households and businesses could receive free or discounted electricity from their energy providers for operating appliances during times of surplus supply, such as sunny weekends.
Previously, energy providers in Britain offered incentives like reduced rates to encourage customers to shift electricity usage away from peak periods.
However, the National Energy System Operator (NESO) has now stated that providers can also motivate consumers to increase electricity use when "weather conditions result in excess supply."
Updated Demand Flexibility Service Approved
The updated Demand Flexibility Service was approved by the industry regulator Ofgem at the end of March. NESO indicated this update will help maintain system resilience over the summer and prevent surplus electricity from being wasted.
Electricity demand typically decreases during summer months due to warmer weather and longer daylight hours, while solar power generation increases.
NESO's research suggests that low demand is "increasingly driven by weather patterns," and the rise of "smaller, local electricity generators" is also reducing dependence on large power stations.
Consequently, periods of surplus electricity are becoming more frequent.
Renewable Energy Records and Solar Growth
Renewable energy generated a record amount of electricity in Great Britain last year, with wind power being the largest single renewable source. Solar-generated electricity increased by nearly one-third compared to 2024 levels.
The year 2025 was the UK's sunniest on record and also marked a record year for rooftop solar panels, with approximately 250,000 new small-scale installations reported to the Microgeneration Certification Scheme.
Incentives for Running Appliances During Surplus Periods
The updated scheme allows customers to be rewarded for operating appliances such as washing machines, dishwashers, and electric vehicle chargers when green energy generation is high and demand is low, for example on weekends or Bank Holidays.
The scheme is available to households with smart meters whose energy suppliers participate.
NESO will inform energy companies about the specific times during the day when the scheme should be active.
Energy providers will receive payments if they can increase or decrease demand during these periods and may decide how to pass these benefits to customers.
Rewards may vary and could include free or cheaper electricity during certain times or points redeemable for gift cards.
Incentives can differ by region; customers in one area might be encouraged to increase usage, while those elsewhere might be prompted to reduce consumption.
Companies participating in the scheme so far include British Gas, Equiwatt, and Octopus Energy, according to NESO.
System Complexity and Low Demand Challenges
NESO stated:
"The complexity of operating the system at low demand is increasing, and we may need to use more of our tools, and use them more often, than in previous summers."
This may involve issuing rare notices to power stations to reduce output to maintain safety during periods of low demand.
Renewables Contribution and Gas Dependency
On about one-third of days in 2025, at least half of Britain's electricity came from renewable sources, based on BBC analysis of NESO data.
Nevertheless, the British electricity grid still relies heavily on fossil fuel gas.
Gas-fired power stations help balance the electricity system by quickly increasing output when renewable generation is intermittent.
Gas Supply Outlook for Summer
National Gas expects Britain to have sufficient gas supplies for the summer, primarily sourced from the UK Continental Shelf and Norway.
Glenn Bryn-Jacobsen, director of energy systems and resilience at National Gas, said:
"While the situation in the Middle East has understandably raised questions about Britain's gas supplies, our forecasts indicate the market has the capacity to deliver sufficient supply to meet demand this summer."
