The power provider says it plans to pay customers to use electricity when supply is plentiful and demand is first low in the world.
Octopus Energy today launched an “innovative” green electricity tariff that promises to pay customers to use energy when demand is low or supply is high.
The energy provider claims that the “dip price” rate every half hour is the first in the world. It will come to home customers paying for electricity use when wholesale prices drop, with Octopus essentially passing negative prices at times of low power demand to homeowners.
Customers will be alerted to reduced pricing opportunities via text message, email, or their online account, according to Octopus Energy, and will receive a full breakdown of energy prices and usage every half hour once a month. .
The UK unit price of electricity has fallen below 2p / kWh 31 times in the last 12 months, including four “price drop” events where the price fell below zero, according to the firm, which claims that a typical home would have saved £ 231 on bills last year compared to the average Big Six variable rate.
The Agile tariff also provides energy from 100% renewable sources, added Greg Jackson, founder and CEO of Octopus Energy. "By reflecting the true cost of energy on the grid every half hour, customers can capitalize on times when prices are especially low," he explained. “In fact, if the wholesale price is less than 0p / kWh, Octopus Agile will actually pay you to take the unwanted energy off the grid. As renewable energy production grows, these events will only become more frequent. "
The tariff launch points to a future energy market where companies can also take advantage of abundant clean energy by increasing consumption at times of negative prices, easing pressure on the grid and cutting overall energy expenses. It is a model that some companies have already applied through demand-side response schemes, which play an increasingly influential role in delivering backup capacity to the network. An Octopus Energy spokesperson told BusinessGreen that they "would love" to hear from companies interested in assuming the rate.
Along with power supply, Octopus Group has also been investing in renewable energy assets through its investment arm. Last May it closed a £ 300m fund dedicated to UK renewable energy projects, bringing the total value of its clean energy assets under management to more than £ 2bn.
Original article (in English)