The National Energy System Operator (NESO) has promised to make it simpler for technologies like home batteries and electric vehicles to participate in the Balancing Mechanism (BM), by relaxing operational metering requirements. It is also launching new workstreams with the aim of removing other metering requirements that have blocked users from responding to flexibility opportunities.
Among the planned changes in 2026, NESO will relax the required frequency of readings from meters and submeters, and the ‘latency’ and accuracy of submeters. In the next phase by 2028 it plans to relax requirements further, by using modelling that will allow it to cover the latency of submeter readings.
NESO said it would also continue an operational metering derogation that allows up to 300MW of aggregated assets to permanently participate in the BM using operational metering requirements that are more relaxed than those being introduced in early 2026. The purpose of the derogation is to ensure that any assets unable to meet the new requirements can still access the BM.
NESO said the reforms are “a critical step in ensuring our systems and frameworks evolve in line with the rapid electrification of households and the growing role of small-scale flexibility.” It added, “As the electrification of transport and heating accelerates across Great Britain, smaller domestic energy assets will play an increasingly important role in balancing supply and demand in real time. Greater participation in the BM reduces system fluctuations and helps lower costs for consumers. …The review confirmed that these updated requirements will maintain system security while opening the door for more flexible, distributed resources”.