The Demand Flexibility Scheme: Are you eligible for free electricity?
Do you have a smart meter? If so, you might be eligible to receive free electricity at certain times!
As of April 2026, an existing national scheme called the Demand Flexibility Scheme (DFS) has been adapted to allow energy companies to offer free or discounted electricity to households with smart meters when electricity supply is higher than demand.
Why is this happening?
This surplus of electricity typically happens when large amounts of renewable energy are being generated. During summer, electricity demand for households is usually lower. Homes don’t need as much lighting or heating with the warmer weather and longer daylight hours. At the same time, renewable generation is higher, particularly from solar power during sunny weather.
There are now more periods when electricity supply exceeds demand, as in recent years:
- 2025 was the UK’s warmest and sunniest year on record
- In 2024, over 250,000 new rooftop solar installations were added across the UK
What is the Demand Flexibility Scheme?
The Demand Flexibility Scheme (DFS) is run by the National Energy System Operator (NESO) and approved by energy regulator Ofgem.
Until now, the scheme mainly rewarded households and businesses for reducing electricity use during peak periods, such as winter weekday evenings.
The scheme has now been expanded so that suppliers can also encourage customers to increase electricity use at specific times and offer rewards for doing so.
In the past, when electricity supply has exceed demand, this has sometimes meant paying power generators to reduce output to keep the grid operating safely. The updated approach focuses instead on shifting when electricity is used, so that more of this low carbon energy can be put to use.
Why does this matter for the energy system?
NESO has said that managing the electricity system during periods of low demand is becoming more complex. Greater use of renewable energy, often generated locally and intermittently, makes balancing supply and demand more challenging.
Encouraging households to adjust when they use electricity helps to:
- Maintain system stability
- Reduce wasted renewable energy
- Make better use of low carbon power
- Keep overall system costs down
NESO decides when the scheme runs and whether electricity use should increase or decrease during that period. Energy suppliers then decide how to pass any rewards on to their customers.
What could households get?
The type of reward you may receive will depend on the energy supplier, but could include:
- Free electricity at set times
- Reduced rates for a few hours
- Reward points that can be exchanged for vouchers
- Credit added to energy bills
Suppliers are paid by NESO when they successfully help shift electricity demand, and how those payments are shared with customers varies.
The scheme can also operate locally, meaning households in one area may be encouraged to use more electricity, while another area might still be asked to reduce consumption, depending on network conditions.
What kind of appliances could you use?
The scheme is designed around activities that use a lot of electricity but are flexible in timing, such as:
- Washing machines
- Tumble dryers
- Dishwashers
- Charging electric vehicles
- Heating water using immersion heaters
These activities are well-suited to periods when renewable generation is high and demand is low.
Who is eligible?
To take part, you’ll need:
- A smart meter
- An electricity supplier that has signed up to the scheme
So far, companies involved include:
More suppliers are expected to join.
What should householders do next?
If you’re interested in taking advantage of more flexible electricity use, there are a few simple steps you can take:
- Check whether you have a smart meter, as this is needed to take part in most flexibility and reward schemes
- Look at your energy supplier’s app, emails or website to see whether they offer time‑based rewards or discounted electricity
- Where possible, shift energy‑heavy activities, such as laundry, dishwasher use or EV charging, to weekends or daytime hours
How our Energy Team can help
If you’re unsure where to start, our Energy Advice team is here to help. You can contact us to speak with one of our friendly energy advisers, who can:
- Explain how demand flexibility schemes (DFS) work
- Help you identify which appliances in your home use the most electricity
- Check whether you may be eligible for flexible tariffs or reward schemes
- Support you with any other energy‑related questions or concerns
As Scotland’s energy system becomes greener, the time that electricity is used is becoming just as important as the amount of energy used. With the right advice, households can take simple steps that could help lower bills, make better use of clean energy and support a more efficient energy system.
Get in touch with our Energy team to find out what options may be available for your household.
