ESO seeks to learn from DFS

The majority of consumers who participated in National Grid Electricity System Operator’s (ESO) Demand Flexibility Service (DFS) last winter found it a positive experience, new research has shown.

A total of 1.6 million households and businesses participated in the scheme, which ran from November last year to March 2023, delivering in total 3,300MWh of electricity reduction.

Research undertaken by the Centre for Sustainable Energy on behalf of the ESO sought to understand consumer awareness and motivations for participating in the demand reduction scheme.

It analysed 136 diaries completed by active DFS participants in the last month of the scheme, 1,700 responses to an opinion poll from a representative sample of the GB population and more than 23,700 responses to an online evaluation survey.

It found 62% of respondents were satisfied with their experience and 83% would participate again.

Reducing energy bills was cited as the main motivation for signing up to the scheme, with this being more important for those who were ‘finding it quite or very difficult’ (65%), compared to 43% of those ‘comfortable or doing alright’.

A similar finding was made in terms of earning rewards, with this being more important for those finding it difficult (30%) compared to those who are comfortable (22%).

Of those who are comfortable, more than a quarter (27%) said they were motivated by the challenge, compared to 21% of those finding it difficult.

Furthermore, qualitative data from the diaries showed that the most common strategies for shifting demand were reducing usage during events (38.7% of responses) and planning usage around events (38.3%).

Satisfaction from managing the challenge (42%), rewards earned (39%), and being part of a national collective effort (38%) were most commonly cited as the main benefits experienced from participating in the DFS.

A report published off the back of the research lists a series of recommendations for future iterations of the service such as including improved advice for households, creating more transparency on the rewards and baseline methodology, as well as widening the public debate about energy system flexibility and demand shifting.

The ESO has confirmed that it intends to use the DFS this winter and it is currently conducting a formal consultation to determine the final terms of this years’ service.

Claire Dykta, ESO head of markets, said: “Last winter’s Demand Flexibility Scheme was a first of its kind for Great Britain, with millions of consumers and businesses actively participating in demand-side energy system flexibility at scale.

“The independent research released today is an important tool for the ESO and industry partners as we look ahead to this coming winter’s scheme and beyond. Alongside the formal consultation process and wide-ranging engagement already underway, this analysis will support us in leveraging the success and lessons learned of last year’s scheme.”