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Flexitricity to take end users into Balancing Mechanism in ‘transformational’ new strategy

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Flexitricity will manage the programme from its Edinburgh-based control room (pictured). Image: Flexitricity.

Flexitricity is bidding to take end users into National Grid’s Balancing Mechanism by seeking a supply licence.

And the Edinburgh-based demand response aggregator intends to give its customers a slice of the £350 million market in doing so.

Flexitricity has not yet appeared on Ofgem’s list of licenced energy suppliers but has expressed its intent to do so. This, the company said, would allow its industrial, commercial and public-sector customers to access to flexible power market that makes up the Balancing Mechanism.

The company noted that in comparison to the wholesale market’s unit cost of around £50/MWh, prices on the Balancing Mechanism can top £2,500/MWh in times of high demand, which it said could be hugely lucrative for owners of generators, battery storage or flexible demand.

Flexitricity will primarily target businesses and public sector organisations, particularly those operating community energy projects, CHP generators and battery storage developers.

Alastair Martin, chief strategy officer and founder at Flexitricity, said there was a “niche customer base” of end users who could contribute more than just purchasing electricity if given the opportunity.

“That’s what this is about. We’re cracking open the most important market in flexible energy for those who can both earn from it and contribute to it,” he said.

It aims to have the new service operational by the middle of next year and will combine its functioning with its existing balancing service work, managed from its control room.

Ron Ramage, chief executive at Flexitricity, said that the move represented a “significant investment” and would create 12 new jobs.

“The new energy trading proposition is a natural evolution of Flexitricity’s business model, taking advantage of our technical capability to exploit a gap in the market we believe represents real value for our customers,” he said.

Flexitricity will collaborate with Nottinghamshire software developer ENSEK, services provider Quorum Development and energy platform supplier Jules Energy for the launch.

“This is the first time anything like this has been done in the Balancing Market and we think it will be transformational – we are unlocking value for our customers as well as for bill-payers across the country by making our electricity system more efficient,” Ramage added. 


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