New energy tariffs will make you pay more when demand is higher

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Three major UK energy companies have backed plans for a sweeping new billing tariff – which would make you pay more for electricity use when demand is high.

Scottish Power, EDF and Octopus Energy, which have 11 million customers, said they would support ‘peak pricing’ for energy bills – the Telegraph reports.

The scheme, using smart meters, could charge you more to watch TV or make a cup of tea in the morning and evening when demand is high – and less when it’s quieter in the middle of the day or late at night.

Households could save money by starting their washing machine or dishwasher last night and charging their electric car overnight.

The amount you pay for electricity will change every 30 minutes.

A spokesperson for Scottish Power said: “Hourly rates updated every half hour will give consumers a real opportunity to save money on their energy bills, especially for electric vehicle drivers. who charge at home.”

EDF said: “We already have a number of simple time-of-use tariffs which allow customers to benefit from lower prices at night when energy is less in demand and therefore cheaper. , including a tariff designed to help charge EVs at a cheaper price. rate.”

Energy companies and regulator Ofgem said the price hike will lead to savings for customers.

Greg Jackson, Managing Director of Octopus Energy, said: “Octopus has offered these tariffs for years and they are incredibly popular with those who want them – but it also allows us to be cheaper for everyone else.”

There is no indication that energy companies will force customers to adopt peak prices.

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