Millions could be offered free energy at some times of day

The proposals, announced as part of the King’s Speech, would allow families to benefit from cheaper energy when the UK is generating large amounts of renewable electricity, such as during sunny or windy weather.

Ministers say the plans could help households save money while reducing Britain’s dependence on expensive fossil fuels.

Under the new Energy Independence Bill, consumers may be encouraged to use electricity during periods when renewable power generation is high and demand is lower.

That could mean cheaper electricity for charging electric cars, running washing machines or using appliances during particularly sunny or windy periods when excess energy is flooding the grid.

At the moment, when Britain generates too much renewable electricity, grid operators sometimes have to pay energy companies to stop producing power because the grid cannot use it all.

Those costs are ultimately added to consumer bills.

The Government says its new plans are designed to stop clean energy being wasted and instead pass some of the benefits directly to households through discounted prices.

Officials believe the changes could become increasingly important as Britain expands offshore wind farms, solar power and other renewable energy sources.

The £90 energy bill change explained

The legislation also makes permanent plans to move older renewable energy subsidies away from household bills and into general taxation.

Ministers claim this could save consumers an average of around £90 on energy bills over time.

Alongside this, landlords may face tougher requirements to improve the energy efficiency of homes, while a new “Warm Homes Agency” could oversee a £15billion programme of home upgrades and electrification.

The Government says support for vulnerable and low-income households will also form part of the wider reforms.

Faster wind farms, hydrogen and nuclear power

The Energy Independence Bill is also expected to speed up the rollout of major energy infrastructure projects, including offshore wind, hydrogen power and upgrades to the national grid.

A separate Nuclear Regulation Bill will aim to fast-track new nuclear power stations as ministers push what they describe as a new “golden age” for nuclear energy.

Energy Secretary Ed Miliband said the reforms were necessary after repeated global energy shocks pushed up bills.

Recommended reading:

He said the Government’s clean power plans were the “only way to bring down bills for good and take back control of our energy”.

While full details of how discounted energy pricing would work have not yet been confirmed, the proposals suggest households could eventually benefit from flexible pricing systems linked to renewable energy availability.

That could reward consumers for shifting energy use to greener, lower-demand periods – something experts say may become increasingly common in the future.

Would you save your washing to run your machine at certain times of day? Tell us in the comments below.