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Demand Flexibility Service

Breadcrumb

  • Industry information
  • Balancing Services

The Demand Flexibility Service (DFS) has been developed to allow the ESO to access additional flexibility when the national demand is at its highest – during peak winter days – which is not currently accessible to the ESO in real time. This new innovative service will allow consumers, as well as some industrial and commercial users (through suppliers/aggregators), to be incentivised for voluntarily flexing the time when they use their electricity.

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.

Earlier this year, we ran a trial with Octopus Energy, where we successfully proved the proof of concept for a demand flexibility service. Following this, we have worked with suppliers, aggregators and consumer groups to scale this up to a national service to support this winter.

Overview

Providing the service

This service is open to as many participants as possible, who need to meet the following requirements:

  • All assets would require half-hourly metering.

  • All assets must be able to respond for a minimum of 30 minutes.

  • 1 MW min unit size/100 MW max unit size.

  • Providers need to be able to respond to an instruction for day-ahead delivery.

  • Providers must provide relevant HH metering and baselining data to demonstrate delivery of demand reduction.

The following exclusions apply:

  • Assets that are dispatchable via the Balancing Mechanism, or participate in Ancillary services or DNO services.

  • Assets that have a Capacity Market contract.


How the service works

  • DFS began on 1 November 2022. 

  • ESO will run a maximum of 12 tests for participants entering from 1 November 2022, where participants will receive dispatch instructions with the opportunity to receive a Guaranteed Acceptance Price for tests. 

  • Four tests will take place in the first full month parties are signed up, followed by two tests in each subsequent month.

  • During a DFS tender, once bids from participants are accepted, participants will contact end consumers/asset owners and request that they deliver demand turn down for the specified bid window.

  • Parties can continue to sign up to the service after 1 November 2022.

  • Response is required for a minimum of 30 minutes.

  • Tender submissions are Pay as Bid.

  • The service will run until March 2023.

NOTE: For consumers wishing to flex electricity use and benefit from the service, you can do so via your energy supplier, who will contact you directly if they are taking part in our service.

There are also 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. Please see the list of Approved Providers. 


Onboarding process

If you are an energy supplier or aggregator looking to participate in the Demand Flexibility Service, here are the next steps to complete as part of your onboarding journey:

  1. Register for a Single Markets Platform (SMP) account and set up your units.

  2. Complete an IT process check (we will invite you to complete this when ready).

  3. Let us know when you are starting your campaign by completing this form

  4. We'll add you to the list of Approved Providers. 


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

Approved providers list

We have now released the approved providers list for the Demand Flexibility Service outlining which providers have signed up.

Please note: This list will be updated regularly as more suppliers sign up.

View the approved providers list

Key Documents

Important InformationProcurement Documentation

Important Information

Published Sort ascending Name
17 Jan 2023DFS Participation Guidance Document v5 (tracked changes)
17 Jan 2023DFS Participation Guidance Document v5 (clean)
16 Jan 2023DFS Communication Principles Document v3
4 Nov 2022DFS Declaration and Terms and Conditions
18 Oct 2022DFS Requirements Paper
18 Oct 2022DFS Guaranteed Acceptance Price Document
6

Procurement Documentation

Published Sort ascending Name
4 Nov 2022Ofgem Decision on the Demand Flexibility Service
4 Nov 2022Ofgem EBR Article 18 DFS Consultation Mapping Document
18 Oct 2022DFS Summary of consultation changes document
18 Oct 2022DFS Service Terms Consultation Documentation
18 Oct 2022DFS Procurement Rules Post Consultation Documentation
5

More information

Watch the recorded presentations from the webinars by pressing the play icon where available or download material from each session using the link below each image.

National Grid ESO Demand trace

World-first Demand Flexibility Service exceeds expectations

Our innovative Demand Flexibility Service has been a great success for participants, delivering a reduction of almost 800 megawatt hours (MWh) throughout events to date, with some companies earning up to £8,000 so far.

Wind turbine in sunset

Nov 2022: DFS Launch Webinar

The launch of the new Demand Flexibility Service following Ofgem approval on the 4 November 2022

Parent and child in winter clothing

Oct 2022: Communications Workshop

Slides from the Communications Workshop held on 20 October.

cityscape rooftops at night banner

Sep 2022: Post-consultation Launch Webinar

A deeper dive into the proposed service design for a new Demand Flexibility service.

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Mid-point consultation: questions and answers

A summary of the questions and answers following our post consultation launch webinar .

NGESO Workers collaborating at whiteboard

Aug 2022: Pre-consultation Webinar 

An overview of the proposed service design for a new Demand Flexibility service.

Discover other Balancing Services

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