National Grid PLC (LSE:NG.) is reportedly paying hundreds of thousands of households to use less electricity this evening as they deploy their emergency scheme to avoid blackouts for the first time.
The company is expected to pay more than £1mln to people and businesses to reduce usage between 5 pm and 6 pm, amid fears of a supply shortage as the cold weather leads to higher energy demand.
This is the first time National Grid has activated its new "demand flexibility service" because of security of supply concerns this winter.
According to Sky News, National Grid has also instructed two coal-fired power units at the Drax power station in North Yorkshire and one at the West Burton A plant in Nottinghamshire to warm up ready to generate in case they are needed today. It is the first time it has put so many of the backup coal plants on standby.
A spokesman for National Grid told Sky: “Our forecasts show electricity supply margins are expected to be tighter than normal on Monday evening. This does not mean electricity supplies are at risk and people should not be worried. These are precautionary measures to maintain the buffer of spare capacity we need.”