Free cash is a hit for businesses

Keighley lighting manufacturer Powerlite Fitzgerald Ltd has been one of the first companies to benefit from a new scheme from Labrador and the National Grid which is paying homes and businesses cash to use less energy in peak periods.

 The family run company, which saw the daughters of company co-founder and chair Nick Robinson, lead a management buy-out last year, was keen to find new ways to bring their energy bills under control.

Director, Pollyanna Robinson, explains that their energy contract comes up for renewal next year, at which time they expect their energy costs to radically increase by 5 times what they pay today. Ms Robinson felt there was a lack of advice and tangible financial help from the government, so has been looking for other solutions.

Ms Robinson has heard about the National Grid scheme and with the help of their long-standing Energy Consultant Hannah Thomas at Advantage Utilities, explored the opportunity to participate. Previously the scheme was only available to customers of Octopus Energy. Now, via providers such as Labrador, any home or business can sign-up for free, regardless of which energy supplier they’re with.

 How does it work:  Labrador notifies any customer in advance as to when the National Grid is requesting people to use less energy and how much they will be paid. It generally happens over a 2-3 hour period in the late afternoon and early evening. Homes are expected to earn around £100 by participating in a few of these Peak Payment “events” this Winter. Businesses, with the capacity to save more energy could earn £100s if not £1,000s.

There is no penalty if you don’t end up saving any energy; just bonus money if you do. You don’t need to send in meter reads - the whole thing is reconciled remotely via your electricity meter , without the need to do anything. The only condition to participate is having a smart or half hourly meter.

Ms Robinson explained that they simply ended their manufacturing hours of operation early on the Peak Payment sessions they have participated in so far. Staff were happy to have a shorter work day and simply did more of the manufacturing faster and earlier, so that there was no loss in productivity.

Ms Robinson was pleasantly surprised to earn £50 each time. It took little effort, cost nothing, and on top of the £50 each time, they also saved £5 off their energy bill. The experience has shown them what is easy to turn off and how they can be more energy efficient generally, in order to keep their future costs down across the next year. They also have a net zero strategy which this helps them to deliver.

Whilst money is king in a recession, Ms Robinson explains that they were motivated by more than just the extra income.

 “Everyone obviously is looking for new ways to save on their energy bills right now. But for us, we were also conscious that as a manufacturer, we do use a lot of energy. We didn’t feel it was fair to use up limited resources and risk homes going into blackout, if we could avoid doing so. Homes deserve to be able to keep the lights and heating on this winter. If we can help that to happen, then that can only be a good thing.”

Labrador works with a number of leading energy consultancies, such as Advantage Utilities, to help optimise management of their energy bills and carbon emissions. Customers can sign up via their Consultant or via Labrador here.