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The ESO’s Demand Flexibility Service

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The ESO, together with electricity suppliers and aggregators, has launched a new Demand Flexibility Service (DFS) for this winter, which will incentivise consumers and businesses to reduce their power consumption at certain times. 

If needed, this new service will help the ESO avoid using its emergency responses if electricity supplies are impacted. 

To ensure that there is a benefit for consumers if supplies are unaffected this winter, the ESO will run a maximum of 12 demonstration tests with each electricity supplier and aggregator between November and March 2023.  

These demonstration tests will have a guaranteed minimum price of £3KWh, meaning that a typical household could save approximately £100 across the maximum 12 demonstration tests. 

NGESO_Couple dancing in kitchen

Why have we introduced the Demand Flexibility Service? 

Creating more flexibility on our electricity system is vital for running a clean, green and fair system of the future. DFS is a real breakthrough and gives consumers a direct opportunity to participate in flexibility services, with potentially millions of homes participating. It could accelerate flexible energy use by many years and will be watched with much interest by other countries. 

In terms of what it means for our electricity system, if we can reduce demand by rewarding participating customers to turn down when we need them to, it means we might not have to bring on expensive and polluting fossil fuel generators. This saves carbon and also saves all consumers money. And in times of system stress, when margins are tight, it could also help us avoid an emergency response.  

How you can take part in DFS 

If you have a smart meter and your energy supplier offers the service, then you’ll be able to sign up to the service with them. We expect participating electricity providers to contact eligible customers from late October/ November onwards. 

If you have signed up to take part in the DFS scheme your electricity provider will contact you before a demonstration test or live event and ask if you want to participate in the following day’s event.  

Demonstration tests will run for one hour, however live events could run for a longer period. There are no penalties for not participating once you have signed up to the DFS or notified your electricity provider that you will take part in a demonstration test or live event. In order to be eligible to receive an incentive from your provider you do however have to participate. 

If you sign up to DFS you will need to authorise your provider to access your smart meter so they can read your data every half-hour for the duration of the service 1st November 2022 to 31st March 2023.  

See how DFS can benefit your business

Which providers have signed up for the Demand Flexibility Service? 

Participating electricity providers are being added to approved providers page, and will be updated regularly as new providers join the DFS.

View the current approved providers list


How you can reduce your power consumption during DFS events 

Households could reduce their power consumption during demonstration tests or live events by choosing to run power-hungry appliances such as washing machines, clothes dryers, dishwashers, electric showers and immersion heaters before or after the ‘event’. Another option would be to reduce energy usage (e.g. using a microwave instead of the oven) during the event window. 

Efficient lightbulbs and small appliances such as modern televisions consume very little electricity and so it is unlikely to be worth adapting usage of these during an ‘event’. 

Using electrical goods overnight can create increased risk of an incident, we advise all consumers to follow the guidance offered by organisation such as Electrical Safety First and were possible to avoid using their electrical appliances overnight. 


Frequently Asked Questions 

How do I sign up to Demand Flexibility Service? 

For consumers wishing to be rewarded for reducing electricity demands on the grid at certain times, you can do so via your energy supplier (this who you pay for your gas & electricity bills) who will contact you directly if they are taking part in our service. Participation is entirely optional and there are no penalties linked to the service.

If your retail energy supplier is not part of the ESO’s Demand Flexibility service, please take a look at our approved provider list. There are a number of organisations who can provide access to the service by linking directly to your smart meter data which is accessed via an app or online. Please note households can only take part with one DFS provider only.

Note: Consumers will be required to have a smart meter to participate in this service, and marketing consent. You will also need to provide permission for your provider to access your half hourly electricity metering data.

How long will DFS events last? 

DFS demonstration tests will last for one hour and will be run during weekdays with each participating provider (electricity supplier, aggregator etc).  

The ESO will run up to four demonstration tests with each provider in their first full month parties as part of the DFS, followed by two tests in each subsequent month, creating a maximum of 12 tests. 

Live events are likely to last for a longer period if they are needed and could run up to 3-4 hours each. These are most likely to be held late afternoon/ early evening on weekdays when demand for electricity is highest.

When will DFS events take place? 

If you have opted in to participate, your energy provider will contact you before the next demonstration test or live event asking if you would like to take part in the following event. 

How much money can I earn by taking part in DFS? 

Each energy provider will have individual incentives for their campaigns, but a typical household could potentially save around £100 over this winter, if they participate in each demonstration test. 

What if I sign up to an event and do not reduce my energy consumption? 

If for any circumstance, including for safety reasons, you are unable to reduce your energy usage during a DFS event you will just pay for your usage as usual – there are no further implications. 

 

Will I have to sit in the dark during DFS events?   

No, this service is about reducing your electricity use where you can and is not asking people to go without electricity. 

Efficient light-blubs and small appliances such as modern televisions consume very little electricity and so it is unlikely to be worth adapting usage of these during an ‘event’. 

I want to get involved but I feel a bit nervous about going without power  

The service is about reducing your electricity use where you can and is not asking people to go without electricity. Participating in the service is completely optional and customers do not have to take part if they don’t want to, even if they have signed up to take part in DFS events.  

Has DFS been done before? 

We have previously run a pilot with 100,000 Octopus Energy customers with 57% of participants saying they loved it. 

I would like to take part but do not have a smart meter 

At the moment, we can only offer the service to providers (Electricity suppliers and aggregators) who can deliver data in 30 minute increments, as this ensures that the ESO can verify delivery. 

This means that suppliers are only able to sign up consumers who have smart meters capable of sending readings in 30 minute increments.  

To support the development of consumer flexibility solutions for the future, we will be looking at how to further expand the eligibility for services like demand flexibility service so that more consumers will be able to participate in schemes like this in future, as consumer flexibility becomes a more automated and daily option to help consumers save on their energy bills. 

Child loading washing machine

Demand Flexibility Service

As part of a range of tools designed to help manage the electricity system this winter, we want to collaborate with energy suppliers/aggregators to allow participating consumers and businesses to reduce their bills this winter.

NGESO_Cityscape rooftops at night_Banner inverted_89008774.jpg

ESO’s Demand Flexibility Service Launches

Ofgem have granted approval to the ESO’s Demand Flexibility Service to run from 3rd November 2022 to 31 March 2023.

Landscape winter mountain sunset with snow_GettyImages-1343486330 (1).jpg

Approved Providers List

Here you can find the current list of providers who are taking part in the ESO Demand Flexibility Service.

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