Monday 30 October 2023

Ofgem approves ESO’s Demand Flexibility Service for this winter

Energy regulator Ofgem has granted approval for the Demand Flexibility Service (DFS) from the ESO, which will be available from 30th October.

The ESO's Demand Flexibility Service aims to incentivise households with smart meters and industrial or commercial users to flexibly adjust their electricity usage, helping manage the energy system during critical periods this winter.

End-consumers interested in participating in the service can engage through various registered service providers.

In the previous winter, 31 providers offered the service and an updated list will be published on the ESO website during the winter season.

DFS, launched last winter, successfully saved more than 3,300MWh across 22 events, sufficient to power almost ten million homes.

The ESO aims to expand the service this year to allow more consumers and businesses to reduce energy bills.

The ESO also plans to run 12 test events this winter for consumers to participate in, with guaranteed acceptance prices for electricity suppliers, aggregators and businesses.

These tests will commence in November and their results will be made public afterwards.

Claire Dykta, Head of Markets at the ESO, said: "Creating more flexibility on our electricity system will be vital for running the clean, green and fair energy system of the future."

Sarah Honan, Flexibility Policy Manager at the Association for Decentralised Energy, said: "Demand flexibility is not merely an additional support for our energy system in times of stress, it is the only way we can reach net zero in a timely and cost-effective manner.

"The DFS is a major step towards that future, where wind and solar generation are not turned off in favour of carbon-intensive gas power, but instead, demand from households and businesses is used flexibly to meet the peaks and troughs of renewable generation."