Innovative Energy Consultancy Ltd
Innovative Energy Consultancy Ltd

Businesses to help reduce peak time demand

Ofgem is introducing new plans to allow the National Grid to ask more businesses to cut back on energy use during peak times in winter. 

According to the BBC, this may mean that the National Grid can also ask for businesses’ support during peak times between 4pm and 8pm in the winter.  Participating firms would be asked to come off the National Grid in return for a payment.

In addition, the regulator plans to allow the National Grid to agree contracts, if it needs to, with power stations to provide extra reserve power in times of peak demand.

According to the BBC, Ofgem has predicted that supply could fall to 2% above electricity demand in 2015-2016, depending on the outlook for demand.

Meanwhile, the Chief Executive of National Grid, Steve Holliday has said “conserving energy, finding ways of using less just has to be a part of the modern world”.

And he said that increasing demand meant that most of the pressure on prices “is upwards”.

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