National Grid ESO’s first demand flexibility test period announced

The first alert for National Grid ESO’s demand flexibility service has been confirmed for 15 November between 17:00 and 18:00.

In doing so, participants of demand flexibility schemes will be asked to turn down their energy demand in a bid to reduce the overall constrained period during the day.

The initiative was set out in the ESO’s Winter Outlook report in October, when the operator stated that while there is a risk of blackouts, it is “cautiously confident” that it had the tools to manage the predicted constraints.

The demand flexibility service, which will run from 3 November to 31 March2 2023, will have a guaranteed acceptance price of £3,000/MWh (£3/KWh) for providers of flexibility.

Last month, National Grid ESO announced that Flexitricity will provide market access to the service.

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.

The list of providers taking part in the ESO demand flexibility service include:

In addition to the ESO’s flexibility service, a number of energy suppliers have also launched their own systems, such as Octopus Energy’s “Saving Sessions” and OVO Energy’s “Power Move”.

Revealed in October, Octopus Energy’s Saving Sessions demand flexibility scheme could save customers £100 on energy bills and reduce demand during peak usage hours. The initiative entices customers of Octopus, who additionally have a smart meter installed, and around 5,000 businesses, to reduce energy usage at peak times with a financial incentive to do so.

The financial incentive sees the energy supplier pay customers for every unit of energy saved compared to their normal usage during certain timeframes. Octopus expects to pay customers £4 on average, potentially saving customers around £100 over the course of the winter.

OVO’s demand flexibility initiative Power Move additionally aims to reduce the demand on the energy grid by providing a £100 financial incentive for participants should they comply.

The trial will have an initial 7,000 participants, however if the scheme was rolled out to all of OVO’s customers, the supplier said it could potentially save £450 million every winter. The trial will also gather data to strengthen the company’s understanding of energy usage during peak times, which will help OVO create further offerings to support a greener and more resilient energy system.

“We’re heading into a critical moment for the UK energy sector, and we need a resilient grid to support households through this winter,” said Raman Bhatia, CEO of OVO Energy, on the announcement of the initiative.

“It’s testament to our customers’ willingness to support new trials and engage with their usage that we’ve surpassed the target of trialists. We hope the results of this trial will give customers a deeper insight into how they can support the wider system, with potential savings to help over winter.”