Reduction Reward Scheme – Customer Success Story

What is the Reduction Rewards Scheme?

Financial incentives are on offer for energy users who are making money by reducing their consumption during certain times. The Electricity System Operator (ESO) for Great Britain has successfully trialled and launched a game changing scheme called Demand Flexibility Service. CUB UK are the only directly registered approved energy consultant to provide this service.

Reduction Rewards gives energy users access to DFS, along with unparalleled experience and advice for businesses needing to know the best ways to shift their energy use for the maximum available payments. CUB UK is a leading stakeholder in this market and is helping to shape energy reduction innovations for businesses.

Winter Highlights:

This winter has seen the Reduction Reward scheme get off to a flying start in November with a maintained guaranteed price per KWh for 6 test events. During two cold snaps CUB UK was able to bid and secure much higher prices for their customers who were financially rewarded for reducing energy consumption during the evenings of November 29th and December 1st. Each of these live events lasted for 1.5 hours on both days and earned CUB UK customers over £50,000 in total. The highest payment for a single live event was over £13,000.

Planning Ahead:

It is anticipated that there will be 12 Reduction Reward events this winter. Extra events will be needed if there are temperature dips that may cause a sudden surge in demand. There are a minimum of 6 guaranteed events left to go, and they will happen between now and March, so with plenty of colder weather ahead there is still time to opt in to CUB’s latest Reduction Reward scheme.

 

Reduction Rewards Case Study – Lincolnshire Herbs

Per live event payment: £10,000 +
Per test event payment: £5,000 +

Lincolnshire Herbs is one of the largest herb growers in the UK and has worked with CUB UK since 2001. By innovating with previous Demand Side Response projects, scheduling lights to grow herbs has demonstrated the potential for significant financial gains. Accessing DFS this winter through CUB UK has enabled Lincolnshire Herbs to generate additional income by optimising lighting and heating times to capitalise on ESO’s guaranteed acceptance prices for test events and higher priced bids secured by CUB UK for live events.

Paul Bailey, Managing Director of Lincolnshire Herbs, added; “Our 17-year working relationship with CUB UK has seen significant business growth with Lincolnshire Herbs expanding its offerings and continuously focusing on quality herb production. Our collaboration’s success lies not only in meeting existing industry demands but also in leveraging innovative energy projects like the Reduction Rewards program, reinforcing our commitment to excellence and revenue generation.”

The Guaranteed Acceptance Price – 2024:

The ESO Guaranteed Acceptance Price (GAP) is designed to provide certainty to participants and has helped to establish energy reduction schemes into the mainstream with its wide adoption signalling a new era in the way energy consumers interact with their supply. The ESO has reported that depending on the volumes which take part in DFS test events this winter, they may decide to run additional tests around March 2024 in which they will add price competition.

To do this they have said they will introduce a “Maximum Acceptance Price” and the Guaranteed Acceptance Price will be set to £0 per MWh, and they will accept only a proportion of the available volumes. These tests will be designed to help the ESO understand how they can roll out and maintain a national DFS as an ongoing commercial service, to support their net-zero electricity system operation.

Conclusion:
With winter Reduction Reward events running up to March now is an ideal time to discover how businesses can earn income by shifting energy consumption.

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