The value of energy discounts given to households that cut their peak time electricity used will be raised, the National Grid ESO has said, in a bid to turn homes into "individual power plants".

Households will now be paid £3 per kilowatt hour instead of 52p if they avoid high-power activities - such as cooking and using the washing machine - when demand is high during peak hours.

The scheme is aimed at easing pressure on the UK power grids this winter, amid a potential energy shortage.

Writing in The Guardian, Fintan Slye, the director of the National Grid's electricity system operation, said: "Businesses and homes can become virtual power plants and, crucially, get paid like one too.

"For a consumer that could mean a typical household could save approximately £100, and industrial and commercial businesses with larger energy usage could save multiples of this.

"We are working with Ofgem to get this scheme launched in November and for it to be rolled out through energy suppliers. If you are interested in participating or understanding what you could get paid, please contact your energy supplier."

The new service would only be available to homes with smart meters installed.