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ISSN 2753-7757 (Online)

Demand flexibility service launches in the UK


Pylons at dusk with a darkening sky Photo: Adobe Stock
A financial return for reducing electricity use at peak times has been offered to consumers for the first time in the UK

Photo: Adobe Stock

The independent energy regulator Ofgem has approved National Grid ESO’s proposal to create a demand flexibility service in the UK this winter.

The Demand Flexibility Service will allow businesses and the public in the UK to be paid for the first time to reduce/move their electricity use out of peak hours following a signal from the electricity system operator (ESO). Ofgem has granted approval to the service to run from 3 November 2022 to 31 March 2023.

This means that electricity suppliers and aggregators (providers) can now formally join the service by signing their commercial contracts and can work with their customers to ensure the highest levels of engagement and participation.

The first demonstration events for the service are to take place in November, with a guaranteed acceptance price for the providers that participate set at £3,000/MWh (£3/KWh). Further details on how these demonstration events perform will be made public in due course.

Fintan Slye, Executive Director of National Grid ESO, says: ‘We are delighted that Ofgem has approved the use of our Demand Flexibility Service this winter. It will help mitigate the potential risks that the ESO has outlined in its Winter Outlook and will allow consumers to see a financial return for reducing their electricity use at peak times. As a responsible operator of the electricity system we have developed this innovative Demand Flexibility Service to complement the robust set of tools we already use to balance the electricity system every day.’