Octopus Energy said it paid over £1mln to customers during a trial of the UK’s demand flexibility service, which sees households cut usage at the National Grid's request.
Between 5pm to 6pm on November 15, 200,000 Octopus customers cut usage by 59% on average, said the firm, saving some 108MW collectively.
This was the equivalent of turning off a gas-fired power station, added Octopus, which is one of the UK’s largest energy suppliers.
Most customers received £1 for the hour on top of money saved, with the biggest cutters being paid an average of £4.27.
“Giving consumers the chance to grab a bargain is a win-win-win: cleaning up the grid, cutting costs and delivering greater energy security,” said Octopus flexibility head Alex Schoch.
“Just like the yellow label products priced to clear in a supermarket, it doesn’t need everyone to take part, but those who do get cheaper energy for themselves and drive down waste and reduce costs for everyone else too.”
Over 400,000 of Octopus' smart meter customers are now signed up to the scheme, which saw its first real outing earlier this week.
It claimed that with similar savings from just one other supplier’s customer base, the UK’s flexibility needs could be met, while demand could be cut by 1GW if all smart meter customers in the country took part.
Citing a tighter domestic energy market due to cold weather and lower supply, National Grid’s electricity system operating (ESO) wing called customers to slash usage between 5pm to 6pm on Monday and from 4:30 to 6pm on Tuesday.
British Gas owner Centrica PLC (LSE:CNA), Drax Group (LSE:DRX), Shell PLC (LSE:SHEL, NYSE:SHEL)’s retail wing, EDF, E.ON and OVO are among other energy companies signed up to the service, which ultimately aims to help balance energy demand and supply.