Millions of families will be paid to use less electricity under National Grid plans aimed at preventing blackouts, according to reports.

The power company is understood to be working on a new scheme that would pay households through their smart meters to reduce usage. It is hoped the plans, first reported The Times, will help to ration electricity this winter amid fears Russia will cut off gas supplies to Europe.

As part of the plan, run by National Grid’s electricity system operator (ESO), households would be paid around £6 for each kilowatt-hour they save during peak times. Households normally pay 28.34p for each kilowatt-hour of energy they use.