The Demand Flexibility Service (DFS) has been developed to allow the ESO to access additional flexibility when 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.
In early 2022 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.
Demand Flexibility Service (DFS) – Register for our pre-consultation webinar
Following on from our three deep dive workshops in April, we have been busy going through all the questions and feedback. We will be holding a pre-consultation webinar on 9 June between 10:30am and 12pm to outline the next steps for DFS winter 23/24 and share the final design proposals.
Register for the pre-consultation webinar
If you missed the deep dive workshops or would like to see them again, the recordings and slides can be viewed on this page.
We look forward to your continued and valued engagement with Demand Flexibility Service.
If you have any questions on Demand Flexibility Service, please email: [email protected].
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 in the tab on this page.
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:
- Register for a Single Markets Platform (SMP) account and set up your units.
- Complete an IT process check (we will invite you to complete this when ready).
- Let us know when you are starting your campaign by completing this form.
- We'll add you to the list of approved providers.
|DFS deep dives - pre-read material April 2023||21 Apr 2023|
|DFS call for input summary of responses||21 Apr 2023|
|Call for input: The future of the Demand Flexibility Service (DFS)||21 Mar 2023|
|DFS webinar 16.03.23 - Q and A summary||21 Mar 2023|
|DFS industry update webinar 16.03.23 slides||17 Mar 2023|
|DFS Show and Listen 08.02.23 Collated Feedback||3 Mar 2023|
|DFS Show and Listen 08.02.23 Collated Feedback Summary||3 Mar 2023|
|DFS Show and Listen 08.02.23 Workshop Slides||3 Mar 2023|
|DFS Declaration and Terms and Conditions||4 Nov 2022|
|DFS Participation Guidance Document v6||8 Feb 2023|
|Ofgem EBR Article 18 DFS Consultation Mapping Document||4 Nov 2022|
|Ofgem Decision on the Demand Flexibility Service||4 Nov 2022|
|DFS Service Terms Consultation Documentation||18 Oct 2022|
|DFS Summary of consultation changes document||18 Oct 2022|
|DFS Procurement Rules Post Consultation Documentation||18 Oct 2022|
If you would like to be rewarded for reducing your electricity demands on the grid at certain times, but 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.
|Provider||Domestic or Non-domestic|
|CarbonLaces||Domestic and Non-domestic|
|Chameleon Technology (UK) as ivie||Domestic|
|CUB (UK) Ltd||Non-domestic|
|EDF||Domestic and Non-domestic|
|ENGIE Power Limited||Non-domestic|
|Equiwatt||Domestic and Non-domestic|
|Hildebrand Technology Limited||Domestic|
|Hugo Energy App (via SMS)||Domestic|
|Labrador (via Perse Technology Ltd)||Domestic and Non-domestic|
|Loop.homes (via SMS)||Domestic|
|myenergi (via Orange Power)||Domestic|
|Octopus Energy||Domestic and Non-domestic|
|Power Rewards App (via Orange Power)||Domestic|
|Shell Energy Retail (Via SMS)||Domestic|
|SolarEdge Technologies (via SMS)||Domestic|
|SMS (aggregator)||Domestic and Non-domestic|
|Uswitch Limited (Via Hildebrand)||Domestic|
|VpowerU||Domestic and Non-domestic|
|Zenobe Energy Limited||Non-domestic|
The ESO’s Demand Flexibility Service explained
All you need to know about our new Demand Flexibility Service (DFS) including why we have introduced DFS and how you can take part.
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.
The first of our series of deep dive workshops, covering the role of the DFS.
The second of our series of deep dive workshops, covering commercials.
The third of our series of deep dive workshops, covering process and operational delivery.
We ran a webinar on 16 March to provide an update on what's next for the Demand Flexibility Service, covering feedback received to date and potential future options for the DFS.
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.
The launch of the new Demand Flexibility Service following Ofgem approval on the 4 November 2022
Oct 2022: Communications Workshop
Slides from the Communications Workshop held on 20 October.
Sep 2022: Post-consultation Launch Webinar
A deeper dive into the proposed service design for a new Demand Flexibility service.
Mid-point consultation: questions and answers
A summary of the questions and answers following our post consultation launch webinar .
Aug 2022: Pre-consultation Webinar
An overview of the proposed service design for a new Demand Flexibility service.