Customers could be rewarded to cut power use in real time

The ESB may send customers a text to indicate when is a good time to use appliances. 

Energy customers could be given real-time information, such as “pop on the dishwasher now as it’s windy”, and given financial incentives in a bid to reduce their electricity use at peak times, as Ireland faces the threat of winter blackouts in the coming years.

ESB Networks proposed to the regulator a “nationwide domestic behavioural demand response campaign”, which it said would reward customers who reduce demand during peak times.

It has developed such schemes to help reduce demand on foot of the "urgent” proposals from the Commission for Regulation of Utilities (CRU) to change tariffs in the face of the “significant risk” to Ireland’s electricity supply in the near and future term.

CRU wants to cut use of energy at peak times and reduce the demand of large users at times when the grid is under pressure. These changes will see households’ bills rise but also will target the “extra large energy users”, such as data centres and other industries, to foot more of the bill according CRU.

In its set of proposals, ESB Networks — which finances, builds and maintains the transmission system under the direction of EirGrid — said it wanted to “play [its] part” in supporting Irish consumers’ continuity of supply.

It said that, at the peak 5pm-7pm times, “there is a possibility of electricity generation shortages” this winter during these hours. This is particularly the case when sustainable sources such as wind are low.

Under its “Beat the Peak” initiative, domestic customers who take part will be sent direct messages suggesting ways to cut their energy usage. During these “peak demand events”, customers will receive notifications advising them of measures to take and receive rewards for taking action.

The ESB said it was designing incentive schemes to test the effectiveness of small financial rewards, such as vouchers to offset cost-of-living expenses. It is also looking at donations to local community groups, schools and charities along with reward statements that communicate the sustainability impact of the action taken, such as “you have saved X tonnes of Co2”.

In the initial pilot period, to run from October to December, customers will be given personalised insights and real-time interventions to try and change their behaviour around energy consumption.

Examples given as to how such interventions would look included:

• “Turning off the lights tonight is a quick way to make a change. Plugging out your TVs will have a bigger impact on usage.” 
• “As a dishwasher owner now is a good time to pop on a wash as it is windy.” 
• “Here are some heat-free meal ideas to help you plan this week’s shop.” 
• “This Saturday plan your meal in advance. Try and use any kitchen appliance outside peak hours and we will send you vouchers.” 
• “Next week, try and do all washing outside of peak hours. Let us know how many days you succeed, and we will send you vouchers as a thank you.”

ESB Networks said it was expecting periods this winter when the pressure is particularly acute on the energy system. In such cases, customers will be contacted directly and given advice on the best actions they can take.

Its first trial period is targeting up to 30,000 customers to take part, with a target of 200,000 customers in the coming years. The ESB said it would use the results from these trials, if successful, to determine how such actions could be scaled up among the wider population.

Smart tariffs

Daragh Cassidy, head of communications at Bonkers.ie, said most households are on normal meters where they can not be charged a different price for peak-time usage, so suppliers can not use price as a way to discourage peak usage among these households.

“So the success of this campaign will hinge on the types of rewards people are offered to move their energy usage to off-peak hours,” he said.

“Some households will obviously play their part regardless, but many won't unless there is a financial incentive or reward to do so.” 

Mr Cassidy said those on smart tariffs would need to be offered better off-peak pricing, as there is not a low enough tariff for off-peak usage.

“So CRU needs to work with suppliers on this,” he said. “Only around 15% of households have a smart meter installed but many haven't activated the meter or signed up for a smart tariff. And it might be harder to encourage this if people think it'll be used as a way to penalise them for peak-time usage.”