Demand Flexibility Service returns this winter

• We’ve confirmed plans, subject to Ofgem approval, for the use of the Demand Flexibility Service for the coming 2023/2024 winter.
• Participants in homes and businesses across Great Britain will again be able to earn pounds, points or prizes across the winter period by shifting their energy usage outside of specified periods, helping with the cost of living and energy bills this winter. 
• Alongside the potential “live” use of the service to help balance the electricity network this winter, we’re looking to run 12 test events to deliver commercial value and incentive for providers, businesses, and consumers to participate. 
• This years’ service will offer providers a Guaranteed Acceptance Price (GAP) of £3,000MWh/£3KWh, for at least 6 of the 12 tests subject to the registered volumes from January 2024. 
• Following regulatory approval from the energy regulator Ofgem, consumers and businesses will be able to sign up to participate in this year’s Demand Flexibility Service in the coming months, so that they can get rewarded like a power plant 

Ahead of the 2023/2024 winter, we’re announcing the return of the Demand Flexibility Service used last year and have submitted our proposal for this years’ service to the energy regulator Ofgem for their approval. Once approved, the Demand Flexibility Service will provide additional tools for managing the national electricity network whilst also helping consumers in homes and businesses across Great Britain to make savings on their energy bills. 

While our early view of winter sets out that system margins are expected to be slightly higher than last winter, as a prudent system operator we’re continuing to build further resilience. Alongside the formal submission to Ofgem, we have also today confirmed details on the Demand Flexibility Service’s commercial proposition for the electricity suppliers, aggregators and businesses who directly contract with us. 

By confirming the commercial proposition for providers, they can now start to prepare their offerings ahead of regulatory approval to enable their customers (consumer households and businesses) to sign up later in the year. By participating in the service, providers can enable consumers, households, and businesses to directly benefit from reducing or shifting their electricity use at key times.  

Recent research about household engagement with the Demand Flexibility Service in 2022/23, undertaken by the Centre for Sustainable Energy on our behalf, found that 89% of respondents were satisfied with their experience in last winter’s scheme and 83% would participate again.  

Participants highlighted satisfaction from managing the challenge, rewards earned, and being part of a national collective effort as the main benefits they experienced from participating in the scheme. Against the backdrop of a cost-of-living crisis, the research found households that were finding things difficult financially were more motivated by the financial rewards of the scheme than households which were financially comfortable.  

Consumers and businesses will be able to sign up to participate in this year’s Demand Flexibility Service in the coming months, following regulatory approval from Ofgem. 

Jake Rigg, Corporate Affairs Director, ESO 

“The ESO will be reintroducing the Demand Flexibility Service for this winter and is keen for more consumers, both large and small, to get involved. We want to work with industry to build on the past success of this new and innovative service. 

Across last winter the Demand Flexibility Service successfully demonstrated the interest of consumers and businesses in playing a more active role in balancing our electricity needs and to be rewarded with savings for their action in the process.”  

Want to learn how Demand Flexibility can benefit you and your businesses?

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