Ofgem has approved a proposal to permit independent aggregators to engage in the wholesale electricity market.

This decision is seen as having potential implications for the energy sector, as it introduces new players to the market.

Under the approved plan, independent aggregators will be able to offer flexibility services on the wholesale market, expanding participation beyond traditional stakeholders.

The Association for Decentralised Energy (ADE) has welcomed Ofgem’s decision, viewing it as a significant step that could influence the long-term affordability of energy for consumers and businesses.

Sarah Honan, Flexibility Policy Manager at the ADE, said: “Today is a watershed moment for the UK flexibility sector. Thanks to a decision by Ofgem, the wholesale market – where the vast majority of electricity is bought and sold – will open its doors to participants beyond suppliers, generators, and financial traders.

“Independent aggregators of demand flexibility, who will play a crucial role in decarbonising our electricity system, will be able to participate in our largest market. It is likely that we will look back on this decision as heralding a step-change in how we consider electricity market trading both in the wholesale market and beyond.”