Post: Unlock savings and rewards with year-round Demand Flexibility Service

Unlock savings and rewards with year-round Demand Flexibility Service

The Demand Flexibility Service (DFS) is set to go live on 27 November 2024. This innovative initiative empowers households and businesses to earn money, points, or prizes by adjusting their electricity consumption during DFS events.

What is DFS?

The DFS was introduced during the winter of 2022-23 as part of the winter contingency toolkit. Its purpose was to act as an enhanced action, in addition to the normal electricity market, to be used to access additional MW during times of high national demand, particularly on peak winter days when the system could have been placed under stress.  

The DFS aimed to incentivise domestic consumers and industrial and commercial users through suppliers/aggregators to voluntarily reduce or flex their demand. The DFS has been viewed as a pioneering initiative that allowed households and businesses to participate in a flexibility market, lowering the entry barrier compared to established markets.

What’s new?

Now in its third year the DFS has undergone changes that expand its scope and impact.

The DFS will now be an in-merit margin service in line with the normal electricity market, meaning that it will no longer be an enhanced action. The National Electricity System Operator (NESO) has integrated DFS into the broader electricity market. It will now compete directly with traditional power sources such as gas power stations and wind farms, offering consumers and businesses a unique role in shaping the energy landscape.

Previously restricted to the winter months, the service is now open to participants throughout the year. This shift reflects improvements in winter electricity margins and a broader vision for demand flexibility as a core element of the electricity market.

Why participate?

By participating in DFS, consumers can:

• Earn rewards: Gain financial benefits, loyalty points, or prizes for shifting electricity usage during high-demand periods
• Support clean energy Help reduce reliance on fossil fuels and contribute to a sustainable energy future.
• Explore new market opportunities: Take advantage of compatibility between DFS and other electricity market schemes, such as the Capacity Market and regional services from Distribution Network Operators (DNOs).

Separately NESO announced that in December 2024, it will release a key report responding to its summer call for input on flexibility and its Routes to Market review for demand-side flexibility. This document will outline strategies for ensuring fair access to energy markets and shaping the roadmap for future flexibility solutions.

Get in touch to find out how we could support your business in the future DFS programme.

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Demand Flexibility Service | Optimise your price this Winter

GridBeyond is working with its clients to provide market access to winter DFS.

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