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UK consumers paid to cut electricity use to balance grid

Financial Times Companies •
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Britain’s National Energy System Operator has paid households and businesses to cut electricity use on multiple occasions since mid‑April, spending a total of £777,800 to reduce consumption by 4,739 megawatt‑hours—equivalent to the daily use of about 693,000 homes. This is more than double the amount curtailed during the same period in 2025.

On a hot July 9, when Neso called for extra supplies, it paid £47,288 to curb 233 MWh between 5 pm and 11 pm. Payments flow through suppliers such as Octopus Energy, which then compensate customers. The demand flexibility service, originally launched during the 2022 energy crisis, has become a routine tool for balancing the grid as renewables grow and now competes with traditional options such as paying power stations to adjust output.

Neso also began offering payments for consumers to increase demand when solar output is high, though only 0.5 MWh was taken up. Analyst Noémie Baud said the service provides needed flexibility year‑round. Meanwhile, shadow energy secretary Claire Coutinho alleged operational lapses on June 23, prompting an Eversheds Sutherland investigation; Neso insists all operational decisions follow established procedures and that record‑keeping remains intact.