Consumers will be paid to run washing machines outside peak hours

2022-10-06

Britain battles to keep the lights on: Consumers will be paid to use washing machines overnight as national grid warns of winter BLACKOUTS – as Duncan Bannatyne’s gyms are latest to shut saunas and pubs turn to candlelight in energy cutbacks

Households will be paid to put on their washing machines away from peak hours
Customers will be given money back on their bills if they help prevent blackouts
Ovo Energy said customers could save £100 if they use energy at off-peak times
Larger businesses will be paid for reducing demand including energy use times
It comes as Liz Truss urges European leaders to help ‘keep the lights on’ in UK

Consumers will be paid to run their washing machines or charge their electric cars away from peak hours as the National Grid warns of blackouts this winter, Bannatyne’s gyms are latest to shut sauna and steam rooms and pubs turn to candlelight in energy cutbacks.

However, shortages of gas, which generated 40 per cent of UK electricity last year, could mean planned three-hour blackouts in some areas to protect supplies for heating homes and buildings, system operators warned.

They would be the first planned blackouts in decades if power plants cannot get enough gas to keep running, the body that oversees Britain’s electricity grid has warned.

Households are being encouraged to help avoid blackouts, ‘save money and back Britain’ by using more energy during off-peak times.

This could see savings of £100, Ovo Energy has told customers, if they sign up to the scheme.

Today Liz Truss is urging European leaders at a summit in Prague to help ‘keep the lights on’ this winter amid fears of shortages in the coming months.

It comes as Dragon’s Den star Duncan Bannatyne’s gym chain became the latest to announce it will be shutting down posh perks like saunas in a bid to save cash amid the deepening energy crisis.

Bannatyne Health Club and Spa, which has dozens of sites dotted across the UK and is owned by the Scottish millionaire, confirmed it will be scaling back on its facilities.

The news was broken to members of the fitness operator in an email, which revealed that some exercise machines, saunas and steam rooms will be switched off during ‘non-peak times’.

And pubs are turning to desperate measures to keep soaring energy bills down, with one in Cornwall even turning off all its lights and replacing them with candles.

In what it called an ‘unlikely’ scenario, the National Grid Electricity System Operator (ESO) said that households and businesses might face planned three-hour outages to ensure that the grid does not collapse.

Households will be paid to put on their washing machines away from peak hours as part of efforts to prevent blackouts this winter. File image

Dragon’s Den star Duncan Bannatyne’s gym chain became the latest to announce it will be shutting down posh perks like saunas

Liz Truss urges EU leaders to ‘keep the lights on’ by sharing energy supplies

Liz Truss is today urging European leaders to help ‘keep the lights on’ this winter.

The PM is in Prague for a summit where she will hold talks with counterparts including French president Emmanuel Macron.

She will push the group to agree that gas and electricity connectors between countries must be kept open, as as the standoff with Russia sparks fears of shortages in the coming months.

The appeal comes amid fears that Norway could opt to close interconnectors with the UK and EU to avoid blackouts for its own population.

Norway has capacity to supply Britain with 1.4 gigawatts (GW) through a cable to Northumberland – which is a key part of National Grid’s contingency planning.

Planned blackouts hit the UK during the 1970s in response to the miners strikes and the oil crisis. There have also been major unplanned outages in storms, including in 1987 when over 1.5 million people were left in the dark.

But the lights will stay on this winter unless the gas-fired power plants that produced 43% of Britain’s electricity over the last year cannot get enough gas to continue operating.

It is the most dire of three possible scenarios that the ESO laid out on Thursday for how Britain’s electricity grid might cope with the worst global energy crisis for decades.

In the other two scenarios, the operator hopes that by paying people to charge their electric cars at off-peak times and firing up backup coal plants it can offset the risk of blackouts.

The margins between peak demand and power supply are expected to be sufficient and similar to recent years in the National Grid Electricity System Operator’s (ESO) base case scenario for this winter.

But in the face of the ‘challenging’ winter facing European energy supplies following Vladimir Putin’s invasion of Ukraine, the grid operator is also planning for what would happen if there were no imports of electricity from Europe and insufficient gas supplies.

To tackle a loss of imports from France, Belgium and the Netherlands, there are two gigawatts of coal-fired power plants on stand-by to fire up if needed to meet demand.

The National Grid Gas Transmission separately said that while gas demand will increase this winter, it expects Britain to be able to get enough gas to take it through a Beast from the East scenario or a long, cold winter.

People are being encouraged to sign up with their electricity supplier to a scheme which will give them money back on their bills to shift their use of power away from times of high demand to help prevent blackouts.

Households tend to consume a fifth of their daily energy between 4pm and 7pm, according to data from Ovo Energy. The supplier on Thursday said its customers could save £100 if they signed up to use energy at off-peak times.

That could mean putting on the dishwasher or washing machine overnight or charging an EV at off-peak times.

The scheme will give them money back on their bills to shift their use of power away from times of high demand to help prevent blackouts. File image

How much could customers save in the off-peak energy scheme?

Earlier this year, The Times reported that savings could be as big as £6 per kWh, or kilowatt hour, saved.

However energy suppliers have since warned that proposed payments are too low.

‘Customers should be properly incentivised to join up front — ie at least £1 to £2 per kWh,’ an Octopus representative warned National Grid at the briefing, The Times reported.

They added that customers were ‘expecting up to £6 per kWh’, the rate mooted in initial proposals reported by The Times in June.

If savings were as big as £6 per kWh, it could equate to around £750 a year.

But at a briefing, National Grid said it may not allow payments of more than 52p per kWh.

This is the same rate customers would have been charged if the energy price cap per unit of electricity had risen as planned this month.

It would mean a saving closer to £70 per year.

Earlier this year, The Times reported that savings could be as big as £6 per kWh, or kilowatt hour, saved.

‘Customers should be properly incentivised to join up front — ie at least £1 to £2 per kWh,’ an Octopus representative warned National Grid at the briefing, The Times reported.

They added that customers were ‘expecting up to £6 per kWh’, the rate mooted in initial proposals reported by The Times in June.

If savings were as big as £6 per kWh, it could equate to around £750 a year.

But at a briefing, National Grid said it may not allow payments of more than 52p per kWh.

This is the same rate customers would have been charged if the energy price cap per unit of electricity had risen as planned this month.

It would mean a saving closer to £70 per year.

In addition, larger businesses will be paid for reducing demand, for example by shifting their times of energy use or switching to batteries or generators in peak times.

The ‘demand flexibility service’ will run from November to March, and it is expected to swing into action 12 times whatever happens to ensure people get rewarded for being part of the scheme — with additional use if needed to protect supplies.

It is hoped it will deliver 2GW of power savings to balance supply and demand.

It follows a trial by Octopus Energy which saw customers paid 20p per kWh saved.

The ESO’s director of corporate affairs, Jake Rigg, said: ‘The demand flexibility service is a first of its kind and a smart way for signed up consumers in homes and businesses to save money and back Britain.

‘If you put your washing machine or other electrical appliances on at night instead of the peak in the early evening, you can get some money back when we all need it.

‘The service is due to launch in November, so watch out for further details soon. This really is a window into the future where a flexible energy system will be cleaner and lower cost to alternatives.’

ESO warned that if there is not enough gas to keep the country’s power stations going in January it could cause three-hour blocks during the day. File image of gas-fired Pembroke Power Station in Milford Haven

It comes as pubs say they are struggling to survive with increased gas and electricity costs making running a boozer difficult — but some have come up with creative ways to stay afloat this winter.

The Masons Arms in Camelford, Cornwall, has gone as far as to just use candlelight on Mondays, to draw in more punters while lowering its energy costs.

Landlady Kate Chawner-Woods has been pushed to the limit by skyrocketing energy bills, after her August statement increased from an average of £700 in 2018 to over £3,000 this year.

Customers of the Masons Arms enjoy the atmosphere at the Masons Arms in Camelford, Cornwall where lights are turned off on Mondays

She said: ‘When I opened the electricity bill I thought ‘how are we going to cope’.

‘It was really scary and we were so worried about how this winter was going to pan out – it’s a massive increase, our electricity bill isn’t much less than our rent now.’

An off-the-cuff comment from one of the local punters gave Ms Chawner-Woods the idea of candlelight Mondays.

National Grid ESO’s winter outlook said that without the scheme, there might be days when it was cold and still — creating high demand and low levels of wind power — when there would be a potential need to interrupt supply to some customers for limited periods.

The ESO also warned that if there is not enough gas to keep the country’s power stations going in January it could force distributors to cut off electricity to households and businesses for three-hour blocks during the day.

‘In the unlikely event we were in this situation, it would mean that some customers could be without power for pre-defined periods during a day — generally this is assumed to be for three-hour blocks,’ the ESO said.

Liz Truss is today urging European leaders to help ‘keep the lights on’ this winter.

The PM is in Prague for a summit where she will hold talks with counterparts including French president Emmanuel Macron.

She will push the group to agree that gas and electricity connectors between countries must be kept open, as as the standoff with Russia sparks fears of shortages in the coming months.

Adam Bell, former head of energy strategy at the Department for Business, Energy and Industrial Strategy, has said the possibility of blackouts is high in the coming months if there is a cold winter and the situation in Ukraine does not change.

He said: ‘The chances of a very cold January itself are quite low, it’s only 10 per cent, or one in every 10 years.

‘But in that scenario, given the constraints Europe is under, given the constraints our system is under, even with the interventions the National Grid already have planned, which includes reopening some coal plants and paying people to turn down their demand, you would likely see some rolling blackouts for domestic customers.’

He also said the UK cannot prepare for this situation now because of little capacity to store gas, adding: ‘We can store some gas but not enough to cover a week or a fortnight.’

Mr Bell added that between 30 per cent and 40 per cent of our power comes from fossil fuels, saying: ‘We haven’t built enough renewable power yet to ween ourselves off (fossil fuels) fully.’

The appeal comes amid fears that Norway could opt to close interconnectors with the UK and EU to avoid blackouts for its own population.

Norway has capacity to supply Britain with 1.4 gigawatts (GW) through a cable to Northumberland – which is a key part of National Grid’s contingency planning.

ESO said the number of people left without electricity would depend on how many gas power stations would be forced to shut down because there is not enough gas.

But this was the worst-case scenario that the grid operator presented.

Its base case assumes that when Britain needs more electricity, cables that link the country to its European neighbours will be enough to keep the lights on.

It does not assume that there is any ‘material reduction of consumer demand due to high energy prices’.

Responding to the winter outlook, a Government spokesperson said: ‘The UK has a secure and diverse energy system.

‘We are confident in our plans to protect households and businesses in the full range of scenarios this winter, in light of Russia’s illegal war in Ukraine.

‘To strengthen this position further, we have put plans in place to secure supply and National Grid, working alongside energy suppliers and Ofgem, will launch a voluntary service to reward users who reduce demand at peak times.’

The spokesperson said Britain is not dependent on Russian energy imports, and has access to North Sea gas reserves, imports from Norway, and via ports which can handle liquefied natural gas, as well as clean energy sources.

However, Adam Bell, former head of energy strategy at the Department for Business, Energy and Industrial Strategy, has said the possibility of blackouts is high in the coming months if there is a cold winter and the situation in Ukraine does not change.

He said: ‘The chances of a very cold January itself are quite low, it’s only 10 per cent, or one in every 10 years.

Mr Bell said such a situation would be caused by ‘a very cold January, we’re unable to import power from the continent, we can’t get more gas because everywhere in Europe is demanding it as well and this means that we have to shut down some of our gas power stations’.

He also said the UK cannot prepare for this situation now because of little capacity to store gas, adding: ‘We can store some gas but not enough to cover a week or a fortnight.’

Mr Bell added that between 30 per cent and 40 per cent of our power comes from fossil fuels, saying: ‘We haven’t built enough renewable power yet to ween ourselves off (fossil fuels) fully.

‘We’d need to replace gas with other sources, such as hydrogen, to really remove gas from our system. So we’re still vulnerable to this sort of disruption. Not the least because 80 per cent of us rely on (gas) for our domestic heat.’

Energy regulator Ofgem said: ‘We have one of the most reliable energy systems in the world and we are in a favourable position.

‘However, it is incumbent on a responsible and prudent energy sector to ensure the right contingency measures are in place.’

National Grid Gas Transmission, which is a separate business to the ESO, said Britain will use more, not less, gas this winter, despite soaring prices.

Households and small businesses whose meters are not read every day are expected to reduce their consumption by five per cent.

Demand from larger businesses and some heavy industry is also expected to drop as they seek alternatives to expensive gas.

But the amount of gas needed to power the UK’s electricity grid is expected to rise by nearly 22 per cent — offsetting the household and business savings.

Some of this extra electricity will go to France, where the nuclear power fleet has faced trouble in recent months.

The gas operator set out several scenarios, including one where the winter is so cold it pushes demand to similar levels as in the winter of 2010.

If this happens Britain will need to start importing gas from storage sites in mainland Europe at high prices.

If another Beast from the East hits, the UK will need to tap into its own gas storage sites.

If the cold snap happens early in the winter when storage sites are still relatively full they can supply all of the extra gas needed.

But if it happens later in winter when storage levels are low the UK will need to import more gas from the continent.

Now Duncan Bannatyne turns off saunas and steam rooms amid cost-of-living crisis: Dragon’s Den star’s health clubs say they are scaling back operations to save cash

ByTom Cotterill For Mailonline

Dragon’s Den star Duncan Bannatyne’s gym chain became the latest to announce it will be shutting down posh perks like saunas in a bid to save cash amid the deepening energy crisis.

Bannatyne Health Club and Spa, which has dozens of sites dotted across the UK and is owned by the Scottish millionaire, confirmed it will be scaling back on its facilities.

The news was broken to members of the fitness operator in an email, which revealed that some exercise machines, saunas and steam rooms will be switched off during ‘non-peak times’.

The email said: ‘You will be well aware of the escalating energy crisis being faced by your own household.

‘This is replicated in businesses like ours and as such, we feel it appropriate to communicate some changes that we have made in our clubs to be more sustainable.’

Hard-pressed: Duncan Bannatyne’s chain of gyms and health clubs has announced it will be shutting off saunas and steam rooms during off-peak times to save money on its soaring energy bills

Jacuzzi pools will also be shut down during certain times of the day across the health group’s 60-plus locations UK-wide. Pictured is the Bannatyne group’s HQ

It added the Bannatyne group was responsible for the bills of a raft of buildings, including head office and swimming pools across its 60-plus gyms.

The email continued: ‘Just as your energy bills are increasing at home, businesses are facing massive increases in energy costs.

‘These increases have an operational impact.

‘We simply have to make some slight changes for the operation in order that we can continue to provide the best possible service to you as members and guests.’

The email also encouraged members to inform staff when air-conditioning was not needed, switching off lights and ensuring showers aren’t left running.

A spokesperson for the club, owned by Mr Bannatyne who has a reported fortune of £515 million, declined to comment further.

The news follows a similar announcement by Nuffield Health, which has announced its jacuzzi pools will be shut off for the entire autumn-winter period.

But costs for gym membership – up to £960-per-year – will remain the same.

A spokesperson said: ‘Our gyms use a significant amount of energy and to meet rising costs we’ve made the decision to temporarily close our spa pools – jacuzzis – for the autumn and winter months as they are energy intensive.

‘This will allow us to keep our swimming pools, steam rooms and saunas open as we know our member value and benefit from these services.

‘Alongside reducing costs, we also have ambitious carbon net zero targets, and we are working hard to be more energy efficient in the long-term by investing in initiatives that will reduce our consumption.’

But gym-goers were left fuming, with one person moaning it was an ‘awful’ idea.

One gym bunny blasted: ‘I don’t see why this dramatic action is now happening! Is anyone considering complaining or know our rights to bring action against Nuffield to stop this happening?

Mr Bannatyne, who is worth more than £500 million, was a former star on Dragon’s Den. He is pictured working out at Bannatyne Health & Fitness Club in Chingford, Essex

Nuffield Health, which owns 114 gyms with pools, charges customers up to £63 a month to use its sites (picture: Nuffield Health gym in Sunbury-on-Thames)

‘I enjoy using the jacuzzi three to four times a week, so to take this away is just awful in my opinion.’

Another said: ‘I got this too. Apparently nationwide. I’m looking at other options.’

A smug rival gym member boasted: ‘What, that’s outrageous, no choice. I’m a member of David Lloyd, if they do that as well there will be riots.’

Another person fumed: ‘I’m a member as well and thought it was disgusting, especially in the winter months when you want to go and relax and get warm.

‘Maybe if everyone writes an email of complaint they might reconsider?

‘The whole point of joining a health club over a bog-standard gym is for the spa facilities, so to take some of that away while charging the same surely can’t be right.’

It’s understood that if members wish to cancel their membership in light of the changes, Nuffield will offer immediate cancellation – although refunds will be considered on a case-by-case basis.

Energy bills are proving an issue for leisure centres throughout the UK.

Greenwich Leisure Limited, a London-based organisation which runs over 250 sport and leisure facilities, has reduced pool temperatures by an average of 1C to cut costs.

There is also a possibility that they may restrict the opening hours of the sauna.

The crisis is also hitting other industries too. One pub in Cornwall has even taken the drastic stance of introducing ‘candlelight Mondays’ in a bid to slash costs.

The Masons Arms in Camelford brought in the novel cost-cutting method as a way of drawing in more punters while saving money.

Landlady Kate Chawner-Woods has been pushed to the limit by skyrocketing energy bills, after her August statement increased from an average of £700 in 2018 to over £3,000 this year.

A customer enjoys a pint by candlelight at The Masons Arms. The pub has taken the creative measure to turn off all lights and replacing them with candles in a bid to cope with soaring energy bills

The Masons Arms in Camelford, Cornwall, has gone as far as to solely use candlelight on Monday nights, to draw more punters in while keeping energy costs low

Venues say they are struggling to survive with the increased costs making running a boozer difficult. And some have come up with creative ways to stay afloat

She said: ‘When I opened the electricity bill I thought ‘how are we going to cope’.

‘It was really scary and we were so worried about how this winter was going to pan out – it’s a massive increase, our electricity bill isn’t much less than our rent now.’

An off-the-cuff comment from one of the local punters gave Ms Chawner-Woods the idea of candlelight Mondays.

She said: ‘I was moaning and cursing when I got the bill through when one of the locals turned around and told me to just turn the lights out, go back to the way it used to be.

‘So that got me thinking and now we’ve gone back to using only candles on a Monday, like how it would have been when the pub opened in 1753.

‘At 6pm we cut out all the lights – people really like it, we had 65 covers last Monday which is far more than we’d usually get on a Monday in October.

‘The atmosphere is great, everybody seems to like it – it’s romantic and people seem to talk to each other a lot more, it’s really lovely.’

It comes as Prime Minister Liz Truss has been accused of misleading people about the government’s promise to freeze energy bills.

Truss announced a £150billion plan to freeze the unit cost of gas and electricity – in a move that will save the typical household £1,000.

However she wrongly claimed on several radio stations that ‘nobody is paying fuel bills of more than £2,500’.

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