The Demand Flexibility Service that saw customers paid to reduce their electricity demand at peak times will used again this coming winter, the electricity system operator (NGESO) has announced, pending approval from energy regulator Ofgem.
NGESO said it expected system margins are expected to be slightly higher than last winter, but it is building in further resilience.
The ESO has confirmed details of the commercial proposition for electricity suppliers, aggregators and businesses who directly contract with the ESO, so they can start to prepare their offerings for households and businesses to sign up later in the year.
Research found that 89% of respondents were satisfied with their experience in last winter’s scheme and 83% would participate again. They 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.

The ESO wants to run 12 test events between November and March. It will run six during November and December with a guaranteed acceptance price (GAP) of £3/kWh. How this price is passed onto the consumer and in what form incentives are offered to consumers will be up to service providers (e.g. aggregators and electricity suppliers).
The following six tests will be competitively tendered, if the level of participation in the service exceeds a set volume.
In the event of live uses of the service to balance the national electricity network there will not be a Guaranteed Acceptance Price, instead the ESO will take the lowest available bids to manage the network requirements, as it does with other market services.