A think tank has warned about the impact of energy shortages on rural areas as the UK faces low gas reserves to meet heating demands during a cold spell ahead. The National Grid has activated the Demand Flexibility Service (DFS), a scheme that compensates electricity users for reducing consumption, in anticipation of freezing temperatures causing a surge in electricity demand. The DFS program compensates homeowners and businesses to address potential electricity shortages during periods of high demand, such as during freezing temperatures. Participants will receive payments for voluntarily limiting their electricity usage, aiming to enhance grid reliability during peak demand periods. Approximately 1.4 million households and businesses have enrolled in the program, receiving payments of up to £10 a day.
Centrica, the owner of British Gas, has initiated gas release from the Rough storage site to meet heating demand, emphasizing the importance of gas storage to manage demand effectively and keep prices down. However, the UK faces challenges due to limited gas storage compared to European counterparts. The use of the Demand Flexibility Service underscores concerns about the strain on the energy system, particularly in rural areas where grid capacity struggles to match growing demand.
David Bean, a manager at the Countryside Alliance, raised concerns about the impact of low energy capabilities on rural areas. He stated that the Demand Flexibility Service highlights the strain on the energy system in rural areas as grid capacity struggles to keep up with increasing demand. Bean also spoke about the potential “disproportionate burden” for rural areas without urban centers taking on a fair share.
The DFS scheme will be tested again from Wednesday evening in phases among energy providers. During 22 events last year, the National Grid ESO claims the scheme successfully saved over 300MWh of electricity, equivalent to powering almost 10 million homes. Earlier this month, the Countryside Alliance called on the government to slash VAT on domestic heating oil, raising alarm about “elevated rates of fuel poverty” in rural communities.