British Gas has announced a plan to reward customers who reduce their energy usage at peak times.

The energy company said consumers could earn £4 per day for every unit they reduce.

Households with smart meters are set to receive emails in the coming days to inform them about the details of the scheme.

It is hoped that the flexibility scheme could attract 100,000 customers who could take measures to take pressure off the grid.

Chris O’Shea, Centrica Group Chief Executive, said: “The electricity grid is facing increased pressure and smart technology plays a key role in managing a peak demand – reducing consumption has the added benefit of helping consumers save on their energy bills.”

In the last couple of weeks, many suppliers, including Octopus, E.ON, Shell Energy and OVO, joined National Grid’s Demand Flexibility Service.