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Struggling families could be forced to ration power when they need it most under the drive to go green.
An overhaul of the energy market will allow homes with a smart meter to be charged more for using electricity at peak times.
Households will pay less for electricity at night and more when demand is high under energy regulator Ofgem’s plans.
The move, which the regulator says could save households £4.6billion over more than 20 years, will allow suppliers to automatically receive readings every half hour and set different rates throughout the day.
It is hoped that encouraging families to spread their power use will ease pressure on the grid as more households acquire electric cars and replace gas boilers with heat pumps.
An overhaul of the energy market will allow homes with a smart meter to be charged more for using electricity at peak times. It is hoped that encouraging families to spread their power use will ease pressure on the grid as more households acquire electric cars and replace gas boilers with heat pumps. Pictured: A woman reads her utility bills (stock image)
They will have to agree to a ‘time-of-use’ tariff – but industry experts say prices are likely to be cheaper than standard deals.
Yet the energy regulator’s price cap will not apply, leading to fears rates could soar when the price of electricity does.
An Ofgem report also reveals that the benefits to bill payers are ‘modest’, with savings of as little as £2 and no more than £9 a year if they cut back on peak power use.
It comes as soaring energy prices are fuelling the worst cost of living crisis in Britain for 30 years. From April the average bill is set to surge by another 54 per cent to nearly £2,000 a year.
Joe Malinowski, founder of TheEnergyShop.com, said ‘surge pricing’ tariffs could mean families are forced to ration energy use during expensive peak times. He also said a smart meter could even cut off power if the
