Flexitricity will provide market access to National Grid’s new winter Demand Flexibility Service (DFS) in order to support businesses amid the energy crisis.
In allowing market access, businesses will be able to offset costs by reducing energy consumption during high-stress periods. This includes the evening peak and the morning peak when electricity consumption rises quickly and can cause issues with demand moving into the winter months.
Revealed within its 2022 winter strategy, National Grid ESO is taking an approach of preserving demand with the inclusion of the DFS. This service has been rapidly designed and developed, and will be contracted to run for an initial period of November 2022 to March 2023. Those taking part will be given 24 hours to react to signals from the operator.
It was announced at the beginning of 2022, and has now been trialled together with Octopus Energy amongst others. Earlier in September, a number of suppliers weighed in on the ESO’s consultation on the DFS.
There is concern that the low level of incentive offered to consumers as part of the DFS may reduce its effectiveness, with too few customers choosing to be part of the scheme.
“Flexitricity is ready to provide market access to winter DFS, using optimised pricing to provide the best return for business energy users,” said Andrew Langlands, head of commercial at Flexitricity.
“Over the last year energy prices have increased significantly which has created challenges for many businesses and households. This new service provides a fantastic opportunity to generate revenue and offset energy costs.
“National Grid has introduced DFS, and other measures, due to the exceptional conditions we’re facing this winter. It will help to safeguard our energy system against blackouts and disconnections and give energy users a much-needed boost.”
The new service is targeted at both domestic and industrial and commercial energy users that aren’t currently participating in other flexibility services and markets.
Via the new initiative, Flexitricity has stated that it is keen to promote to a range of businesses who can benefit from this new revenue stream, including manufacturing, refrigeration, water and waste companies.