Give up control of your thermostat in winter – and save money

A new government initiative aims to give energy suppliers the authority to remotely adjust household heating systems during peak demand periods, potentially reducing the risk of blackouts and helping households save money on energy bills. The Smart Secure Electricity Systems scheme, proposed under the former energy secretary Ed Miliband, would allow companies like Octopus Energy and British Gas to manage heat pumps through the internet, adjusting thermostat settings and scheduling operations to ease pressure on the national grid. The plan involves offering financial incentives to homeowners who agree to let their suppliers regulate their heating systems during times of high energy demand, primarily in winter. Participants would receive discounts on their energy bills in return for granting access to their heating systems. While suppliers would have the ability to make adjustments, customers would retain the option to temporarily override these changes or permanently opt out of the program. According to experts, the scheme could involve actions such as briefly pausing electric vehicle charging sessions and resuming them later, delaying heat pump operations for short periods, or subtly altering thermostat settings and water heating schedules. Mahmoud Shafiee, a professor of energy resilience at the University of Surrey, explained that this approach could help balance energy use without significantly impacting comfort levels. Octopus Energy emphasized that the decision to participate in the program would remain entirely voluntary. A company spokesperson stated, “The reality is that heat pumps, like all other devices, work according to the owner’s preferences. If they choose to opt in to services that slash their energy bills by automating it, that’s the owner’s choice.” Professor Jan Rosenow from the University of Oxford noted that for customers with smart heat pumps connected to the internet, their systems could be adjusted under specific circumstances. He suggested that users might set a minimum temperature for their homes, allowing suppliers to reduce it during periods of high grid stress. Similar principles could apply to electric vehicle chargers, where users might specify a desired level of charge, allowing automatic adjustments or pauses during constrained periods, ensuring the full charge is achieved by the desired time. Recent concerns over potential blackouts have intensified due to geopolitical tensions, including the Iran conflict and the closure of the Strait of Hormuz, which have contributed to a global energy crisis and rising oil prices. Additionally, extreme weather conditions, such as recent heatwaves, have placed increased strain on the energy grid. During one particularly hot spell, the National Energy System Operator (Neso) issued three electricity margin notices, indicating the need for additional power generation. High temperatures have driven up energy demand as millions rely on air conditioning and fans to stay cool, while reduced power imports from Europe have further strained the system. Neso reportedly paid £47,288 to consumers to reduce their electricity usage between 5pm and 11pm on 9 July, following an electricity margin notice. Experts warn that the increasing reliance on renewable energy sources, which can be more unpredictable, may heighten blackout risks. However, Shafiee pointed out that large-scale blackouts typically result from multiple factors, such as simultaneous generator failures, transmission issues, severe weather, cyber threats, or sudden demand surges, rather than solely inadequate renewable generation. The Department for Energy Security and Net Zero has highlighted the importance of managing energy demand effectively to prevent blackouts and ensure reliable supply. The proposed scheme represents a proactive step toward achieving this goal, balancing consumer interests with the broader objective of maintaining energy security.