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Demand-side flexibility

Editor's picks

Hunt unveils generation levy exemption and grid planning overhaul
Jeremy Hunt has announced that new electricity generation will be exempted from the government’s windfall levy on the sector, while unveiling a wide-ranging package of energy infrastructure planning changes in his Autumn Statement. The statement, widely reckoned to be the last before the next general election, contains a series of announcements on reforming the planning system and speeding up electricity grid connection timetables.
News
Experts split on size of long duration storage target
Experts on long duration energy storage (LDES) are split on the necessary target needed to deliver the UK's decarbonisation goal. While some experts have urged the government to set a long-term target of up to 100TWh, others have suggested that a smaller “no regrets” target should be set to “get the ball rolling” on LDES. However, government officials have refused to be pushed on the possible size of a target.
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Government must not slip back into complacency on CfDs
The government must not slip back into the complacency that ultimately led to the failure of the latest Contracts for Difference (CfDs) auctions to attract any bids from offshore wind projects, an industry expert has warned. Earlier this week, the government announced hikes to the strike price caps for next year’s auctions but Adam Bell, director of policy at Stonehaven, said further changes are needed to prevent a repeat of the problems that emerged during allocation round five (AR5).
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Latest in Demand-side flexibility

Another record high price expected in T-4 capacity auction
The next four-year-ahead (T-4) Capacity Market auction is expected to clear at a record high price for the third year running after the margin between prequalifying capacity and the procurement target fell to its lowest level since the auctions began in 2014. Although the target has been raised slightly to 43GW, according to analysis by EnAppSys, 45.2GW of de-rated capacity has prequalified for the auction in February next year, leaving a margin of less than 2.2GW – or 5%.
News
Scottish Power launches flexibility app
Scottish Power has partnered with Equiwatt to help its customers to participate in the Electricity System Operator’s Demand Flexibility Service this winter. The Equiwatt smartphone app rewards customers for reducing their electricity consumption during ‘powerDOWN’ events with points that can be redeemed for high-street shopping vouchers or donated to charity. It has now been adapted to create a separate version specifically for Scottish Power's customers.  
News
SSEN seeks new flexibility market platform
Scottish and Southern Electricity Networks (SSEN) has announced plans to hold a tender for a new market platform to host its future flexibility auctions. The company is aiming to procure 5GW of flexibility over the five-year ED2 price controls and is now reviewing the tools and platforms that are available to help achieve this goal.
News
In demand: Why the DFS needs to deliver
Both the ESO and industry have high hopes for the demand flexibility service this winter, but attention must now turn to its future role. Lucinda Dann looks at industry’s key asks for the flex service.
Analysis
Ofgem throws weight behind locational pricing
“All or most” consumers would be better off from full exposure to locational pricing when compared to the status quo of national wholesale power pricing, according to Ofgem. The regulator highlighted this as one of the main conclusions from its assessment of locational pricing for the government’s ongoing Review of Electricity Market Arrangements.
News
Electricity North West launches £7m flexibility tender
Electricity North West (ENW) is seeking more than 400MW of flexibility across its network, with up to £7 million available for providers. Its latest invitation to tender is calling for a total of 413MW from 2024-28 across 29 locations, which the distribution network operator (DNO) said could save billpayers more than £28 million by deferring costly reinforcement work.
News
Ofgem approves change to TNUoS charge for boundary connections
Demand users who are connected to the transmission network on a boundary between different demand zones will pay an average Transmission Network Use of System (TNUoS) charge, under changes approved by Ofgem. A code modification to the Connection and Use of System Code, approved by the regulator Ofgem, was needed due to a number of demand users being expected to connect at a boundary point between multiple distribution network operators (DNOs) during the 2022/23 charging year.
News
Demand Flexibility Service given green light
Ofgem has approved the Electricity System Operator’s (ESO’s) plans to reinstate the Demand Flexibility Service (DFS) this winter. It means that customers will be incentivised to reduce their energy usage during times of constraint from Monday 30 October.
News
Transmission credits could attract storage to areas with surplus power
Assets such as batteries and electrolysers that can soak up excess power should receive transmission credits to incentivise them to locate in areas of the country with surplus renewable output. An SSE commissioned report points out that this would mirror the arrangements for generators which already receive credits for locating in areas where electricity demand outstrips supply. This is one of a number of recommended options for reforming Transmission Network Use of System (TNUoS) charges and constraint management to help drive the decarbonisation of the electricity system.
News
Ofgem risks capacity unless DFS approved now
Energy suppliers have called on Ofgem to approve plans for the demand flexibility service (DFS) ahead of its deadline or risk limiting available capacity. The regulator has until the end of this month to approve Electricity System Operator’s (ESO) plans for this year’s DFS and suppliers cannot recruit customers until they have received the full terms and conditions.
News
ESO to introduce greater price competition for DFS tests
The Electricity System Operator (ESO) has revealed plans to introduce greater price competition for Demand Flexibility Service tests next year. The ESO said the minimum price consumers have hitherto received for participating in the tests will not apply to those taking place from January 2024 onwards if the expected volume of demand reduction exceeds a set threshold.
News
Code of conduct to keep flexibility providers in check
A new code of conduct has been drawn up to ensure flexibility service providers are giving customers a fair deal. The HOMEflex code has been developed by Flex Assure, Scottish and Southern Electricity Networks (SSEN) and the Centre for Sustainable Energy. It sets out a range of required customer protections including expectations around sales behaviour, contractual terms, data handling and dispute resolution procedures.
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