New look Demand Flexibility Service to go live next week

• Following approval from energy regulator Ofgem, the National Energy System Operator’s (NESO’s) Demand Flexibility Service will go live from Wednesday 27 November 2024. 
• As with previous years consumer households and businesses can sign up to participate via registered service providers, such as household energy suppliers, aggregators and other third parties in order to earn pounds, points or prizes.
• Changes to the Demand Flexibility Service will now allow households and businesses to participate across the entire year, instead of being limited to just the winter months.
• Over the last two years the Demand Flexibility Service has seen over 2.6 million households and businesses take part, saving over 7,000MWh of electricity. 

NESO’s Demand Flexibility Service will go live from Wednesday 27 November 2024, enabling households and businesses to earn pounds, points or prizes in return for shifting their electricity usage during DFS events.

Two major changes to the service will see consumer households and small and medium sized businesses able to participate across the year for the first time, rather than just during winter months.

As winter margins have improved NESO is able to consider the long-term future of the Demand Flexibility Service outside of its original purpose as a winter only enhanced action outside the electricity market.

By adapting the rules of the service, NESO is now able to offer the Demand Flexibility Service on a year-round basis as part of the wider electricity market. Going forwards the service will directly compete with power generators such as gas power stations and wind farms. This change allows the service to operate across the year rather than only during winter months, providing greater opportunities for consumers and businesses to participate.

With these changes NESO has also been able to allow the Demand Flexibility Service to interact with other markets, enabling compatibility between NESO’s national Demand Flexibility Service, the Capacity Market and regional services offered by Distribution Network Operators. This means that participating consumers and businesses will have greater options to participate across the year, increasing the incentive to get involved.

The service will go live on Wednesday 27 November with households and businesses able to pre-register to participate today through participating energy suppliers, aggregators and other third parties identified by NESO as registered service providers.

Demand Flexibility Service bridges some notable gaps to the electricity market for demand flexibility. We know we'll need more demand flexibility capability as part of a clean power system. In December, NESO will publish the response to its summer call for Input on flexibility as well as the Routes to Market review for demand side flexibility. In that document, we'll set out thoughts on how to ensure fair access to our markets for all types of demand flexibility. Working together with DESNZ, Ofgem, and wider industry, this document will help shape the roadmap for future demand flexibility.

Rebecca Beresford, Director of Markets at NESO, said:

“NESO is excited for this new chapter of the Demand Flexibility Service. Opening up access for consumers and businesses to participate in the electricity market year-round is a significant step in the delivery of consumer flexibility."

Demand Flexibility Service