Regulator approves North West tech that could wipe millions off electricity bills
A first-of-a-kind energy system developed in the North West could save UK consumers up to £1bn after being given the green light to be rolled out nationally by energy regulator Ofgem.
The system, called CLASS, was developed by Stockport-based Electricity North West to help National Grid Electricity System Operator (ESO) manage the power network across Great Britain.
It helps balance spikes in demand for energy or dips in supply by imperceptibly reducing the amount of power being used by everything, from streetlights to industry to everyday household devices.
Regulator Ofgem gave its seal of approval this week, stating in a report: “Our updated assessment suggests that the net economic benefit is likely to be significant. Prohibiting CLASS would narrow the set of choices available to the ESO and mean consumers faced higher electricity bills than they might otherwise do.”
It also said: “We consider that CLASS is one of the many low cost, low carbon and reliable technologies that will be needed to meet the ESO’s future balancing service requirements.”
The system was deployed over two years ago in the North West with North West customers having received approximately £7.3m off their own electricity bills as a result, on top of savings for all Great Britain’s energy consumers from lower balancing costs.
Ofgem also revealed: “Stakeholders including the National Grid ESO observed that CLASS could be deployed to reduce or, in some cases, eliminate the need for automated disconnection.”
Paul Bircham, Electricity North West’s engagement and regulatory strategy director, said: “The system really is one-of-its-kind and it will benefit all electricity customers, and if rolled out nationally, Ofgem have estimated CLASS could save customers in excess of £1bn.
“We do understand it’s a worrying time for all bill payers and we’re committed to doing everything we can to help ensure annual bills are kept as low as possible.”
The need to balance the UK’s power supply in clean and low cost ways has increased in recent years as the country transitions towards using more and more clean, renewable energy.
Because solar panels and wind turbines are less predictable, the National Grid has to be able to quickly respond to sudden rises or falls in electricity generation or changes in the nation’s use of electricity.
The changes CLASS makes are so small that typical households don’t notice a thing, but when applied across large areas, can make significant differences to the amount of short term power required, helping stabilise the National Grid.
