The National Energy System Operator (NESO) has announced the new version of the Demand Flexibility Service (DFS) will go live on 27 November.
Having announced in June that the previous version of the DFS, which ran every winter from 2022, would be wound down and replaced, a replacement service will launch next week, in time for the harshest spells of the British winter. Owning to an optimistic margin forecast this winter, with NESO’s Winter Outlook expecting the base case de-rated margin forecast to be 5.2GW, or 8.8% of peak average cold spell demand, NESO now says it is in a stronger position to consider the long-term future of the DFS service.
The DFS is a system which rewards households who choose to lower their energy use during times of peak strain on the network, often with money off their energy bills. Over the last two years, over 2.6 million homes and businesses have participated in the programme, saving an estimated 7,000MWh of electricity at peak times.
The updated version of the service features some significant changes; most notably, the DFS will now run year-round, instead of just over winter as in previous years, forming part of the wider electricity market. It will be compatible with the Capacity Market and regional services offered by Distribution Network Operators (DNOs). NESO states that this will increase the number of options for participating in the flexibility market across the year, incentivising homes and businesses to get involved.
Households and businesses can pre-register to take part with their energy supplier from today, ahead of the launch on 27 November.
In December, NESO plans to publish the response to its call for input on the flexibility market, as well as the Routes to Market review for demand side flexibility. NESO states that, while working alongside the Department for Energy Security and Net Zero (DESNZ), the energy regulator Ofgem, and the wider industry, these documents will “shape the roadmap for future demand flexibility”.
Rebecca Beresford, director of markets at NESO, said: “NESO is excited for this new chapter of the Demand Flexibility Service. Opening up access for consumers and businesses to participate in the electricity market year-round is a significant step in the delivery of consumer flexibility.”
