The Energy Networks Association (ENA) has launched a consultation on the next version of its standard contract for flexibility services.
Stakeholders have been invited to help shape the third iteration of the contract, which was first agreed in April last year and streamlined in an update in March.
The initial proposals for the next update including further streamlining the agreement, with the contract length being reduced by almost 50 per cent; further aligning it with the contracts of National Grid Electricity System Operator (ESO); modifying the wording to cover aggregators providing services from fleets of smaller assets; improving options for dispute resolution; and enabling the sharing and publication of data to provide greater transparency.
The ENA has also proposed to create an agile framework structure, under which multiple contracts can be awarded and at shorter notice, for example, in day-ahead auctions.
Farina Farrier, head of the ENA’s Open Networks project, said: “This announcement comes at a time when flexibility is at the forefront of industry’s mind.
“We recently revealed record levels of local flexibility have been contracted so far this year and figures from government’s recent Smart Systems and Flexibility Plan – which ENA welcomed – show that flexibility could also reduce annual energy system costs by £10 billion a year by 2050 while also creating 24,000 ‘green collar’ jobs.
“We want to continue this progress, alongside the networks, Ofgem, government and other interested parties. A key part of the project is to be open with the way that we work, the outputs we publish and in receiving feedback, and this consultation is no different.”
Andy Rice, flexibility services agreement project lead at National Grid ESO, added: “This is another positive step towards a ‘whole industry’ standard agreement being finalised. A single, aligned contract for Great Britain’s distribution network operators will help networks better manage their systems and plan investment.
“The UK has some of the world’s most ambitious decarbonisation targets and ENA’s Open Networks project is helping to pave the way through flexibility to bring on more low carbon technologies”.
The consultation will close on 22 October and the new standard contract will be published at the end of this year.
Innovation around vulnerability
The ENA has also issued a call for ideas for innovation projects to help vulnerable customers.
Successful applicants will get the opportunity to pitch their idea to network operators at the Energy Networks Innovation Conference on 15 October. The ENA said proposals must meet the requirements to be able to receive funding from Ofgem’s Network Innovation Allowance.
Dan Clarke, head of innovation at the ENA, said: “Innovation is powering us to net zero but it’s crucial that we make sure that everyone can benefit, especially those who may live in vulnerable circumstances.
“We believe innovation is key in this space and want to hear about new ideas specifically focused on helping those customers who need it most.”
The deadline for entry is 5pm on 10 September.