Demand Flexibility Service ReturnsBusinesses to be paid for not using electricity as Ofgem approves Demand Flexibility Service for this winter.

The Demand Flexibility Service Returns (DFS) and will once more be in operation this winter, from the 30th October, the energy regulator Ofgem and National Grid Electricity System Operator (ESO) have announced.

The Demand Flexibility Service (DFS) has been developed to allow National Grid Energy System Operator (ESO) to access additional flexibility when the national demand is at its highest, which is often during peak winter days.

For the 2^nd year running this innovative business service will allow industrial and commercial customers to be financially incentivised and rewarded to voluntarily “flex” the time they use their electricity.

Based around predicted peak usage hours, typically 4.00pm to 7.00pm in winter.

The service is about participants reducing electricity use where they can, not going without electricity in times of need. Participating in the service is completely optional, customers do not have to take part if they don’t want to, even if they have signed up to take part in DFS events.

Unlike demand side schemes, there are no penalties if a business does not reduce their demand within DFS event periods, however the reward can be great if you have the scope to reduce consumption.

Who can participate?

Any business customer with electricity meters which are half-hourly settled (i.e. profile 00), plus SMETS 1 & 2 type meters, can participate in the scheme.

What does it entail?

The ESO will inform of the system need for consumers to reduce consumption.

You will receive an event signal via email twenty-four hours before a DFS “test” event and within day for a live “event”

In the Winter 2023/24 there will be 12 “test” events” and an unknown number of “live” events

Customers will be paid for both test and live events.

It is down to you to make your best endeavours to reduce your consumption on the event day likely between 16:00hrs and 19:00hrs.

You will receive further email reminders at set intervals during the event day.

How much can you earn?

You can earn upwards of £2.10 per kWh of electricity reduction.

The calculation of what you have reduced will be assessed on how much energy you have consumed over the previous 10 days during the similar time period of an event.

Is there a cost to participate?

There are no upfront costs to participate.

Are there any penalties if you do not reduce demand?

There are no penalties if you do not reduce demand. You simply do not gain any benefit.

Simple Sign-Up Process

> Register your half hourly electricity MPAN’s for the scheme – No equipment, no minimum requirement, no commitment.
> We will notify you the day before an event and again on the day to reduce consumption at set intervals, typically 2 x 30-minute periods.
> A final reminder 30 minutes before and then 5 minutes before an event starts.
> You simply reduce your total electricity consumption during the event.
> We will notify you once again once the event has finished.

Your demand reduction is automatically calculated based on the previous 2-weeks consumption during the same event time frame, based on 2 x 30-minute periods.

Customers can only sign up to one Registered DFS Participant at a time.  If a consumer subsequently signs up to another Registered DFS Participant, they will no longer be eligible to participate in DFS with the previous Registered DFS Participant with whom they were previously signed up to.

Register your Electricity Meters today:

We are inviting half hourly customers to participate in the new ESO “Flexibility Service”. This new service has been developed to reward customers with half hourly meters to reduce demand and provide additional flexibility to the grid at times when the national demand is at its highest – during peak winter days.

Catalyst Digital Energy is an award-winning energy consultancy with a focus on digital energy services, total energy contract lifecycle management and energy management services. It is revolutionising how businesses manage energy with its unique Energy Spend Management Platform, which is powered by Robotic Process Automation (RPA) EaaSi®.

Catalyst is digitising all aspects of energy, including billing, data, consumption, spend, payments, procurement and emissions reporting. When combined with its fully funded renewable energy solutions, Catalyst offers a unique and powerful approach to managing energy.