New tools for demand flexibility service

Ofgem has given the green light to major changes to the Demand Flexibility Service (DFS) which helps businesses and homes benefit from flexing their supply.

This year those taking part in the service will be able to be rewarded for increasing electricity consumption during periods when there is excess supply as well as for shifting their electricity usage away from peak times.

The system operator said the new approach will allow users to benefit from strategic electricity use throughout the day.

Since its launch, over 2.46 million businesses and consumers have signed up and the service has seen a reduction in the participation threshold from 1MW to 0.1MW, making it more accessible for smaller energy suppliers and businesses.

Rebecca Beresford, Director of Markets at NESO, said: “Enabling consumers to benefit by increasing their electricity use at those times is a critical step to making demand side flexibility work for consumers and the system."