After about the 15:00 minute point he describes this demand flexibility scheme where consumers are paid £2.50 for each kWh they do not use during peak demand times in the early evening – 4 to 7 PM. That’s ten times what consumers pay per kWh. But if the utility pays consumers that much, they must be saving more by reducing demand and not having to buy peak power. In other words peak power must be very expensive at times. Not having to start up a gas fired power plant must save a lot of money!
What I wonder is what amount do they compare the “unuse” to in order to arrive at the value the consumer should be paid. So watch it and find out. Okay, he said that the savings were based on the consumer’s historical usage at that time.
