The UK’s Electricity System Operator (ESO) has announced changes to the Demand Flexibility Service (DFS).
The ESO has predicted that this winter, the excess electricity it will be able to call on in a cold spell will be higher than last year, meaning the requirement for the DFS as a contingency will be reduced. As such, the ESO does not intend to use the DFS this winter. However, it has announced that it plans to expand an evolved version of the service all year round to balance the grid during periods of high demand.
Since the winter of 2022/2023, the DFS has helped to balance the grid by incentivising households to use less power during peak times. Consumers could be rewarded with money off their bills if they used less power during pre-determined periods.
The evolved version of the DFS will allow it to compete against the other commercial tools available to the ESO control room and DFS providers. Customers would, for the first time, be able to stack the service with other revenue streams, ensuring greater opportunities to realise value from flexible electricity use.
Kayte O’Neill, chief operating officer at the ESO, said: “The Demand Flexibility Service has been a national first in empowering households and businesses to embrace energy flexibility and to be rewarded in the process. As we transition away from requiring DFS as a winter contingency service it is only right that we look to the future of what this service can deliver.
“We look forward to working closely with industry over the coming months to deliver a service that makes flexibility part of everyday life and that can unlock the benefits for participating consumers and society at large.”
