People will be paid for cutting their electricity usage later today as part of the first live Demand Flexibility Service (DFS).

The scheme, joined by 26 suppliers, was triggered on Monday, as tighter energy supply margins are expected as the UK’s cold snap continues.

However, experts have raised concerns about whether the scheme can have a long-lasting impact on the UK’s grid.

Kelly Becker, President of Schneider Electric UK&I, commented: “Short-term incentives to reduce consumer demand for energy may be useful as a precaution against power outages. However, they are a sticking plaster on an even bigger issue.

“Over 60% of all the energy that is produced globally is lost or wasted before it is consumed. If we were to approach the crisis differently and tackle just a fraction of this stocking level of waste, then we could easily reduce consumption and keep the lights on and thermostats up.

“According to ONS figures released in October, homes across England and Wales have a median EPC energy efficiency rating in band D. Meanwhile only around a third of owner-occupied and privately rented properties and rated C or above, which is the minimum level for new build homes.

“Most of our housing stock needs retrofitting to meet the target, bring down costs, reduce waste and go a long way to easing the energy crisis.”

ELN has contacted BEIS for comment.