Ofgem approves ESO’s Demand Flexibility Service for 2023/24Ofgem approves ESO’s Demand Flexibility Service for 2023/24

Energy regulator Ofgem has today (27 October) approved National Grid ESO’s Demand Flexibility Service (DFS) for this coming winter with the service to be available from 30 October.

The previous DFS service, which ran from November 2022 until March 2023, had 22 service events with 1.6 million households and businesses having signed up. In total, participants in the service managed to shift over 3,300MWh of electricity during peak times providing support for the grid during periods of increased strain.

ESO confirmed its intention to run 12 test events that consumers can participate in alongside potential live uses of the service to balance the network this winter.

Electricity suppliers, aggregators and businesses who directly contract with ESO will receive a guaranteed acceptance price of £3/kWh for at least six of the test events.

In a statement made by the organisation, ESO said the tests are scheduled to begin in November.

Claire Dykta, head of markets at the ESO, said: “The ESO is delighted that Ofgem has formally approved the return of our DFS this winter. Households and businesses across Great Britain can now benefit from actively participating in helping balance the network during tight winter periods and be incentivised to do so.

“Creating more flexibility on our electricity system will be vital for running the clean, green and fair energy system of the future.

“Last winter’s service was a first of its kind for Great Britain, with millions of consumers and businesses actively participating in demand-side energy system flexibility at scale, and the response from industry and the public has been incredibly positive. 

“The service compliments the robust set of tools the ESO already uses to balance the electricity system every day.”