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Flexitricity has announced it will provide market access to National Grid Electricity System Operator’s (ESO) new Demand Flexibility Service.
The service, due to be launched at the beginning of November, has been rapidly developed by the ESO in recent months as one of several contingency measures to help prevent blackouts in the face of potential gas shortages this winter.
Flexibility said the Demand Flexibility Service (DFS), which is open to domestic, commercial and industrial energy users that are not already participating in other flexibility services and markets, will enable businesses earn money by reducing their consumption during high-stress periods such at the evening peak in demand and the morning pick-up.
Andrew Langlands, head of commercial at the independent aggregator, said: “Flexitricity is ready to provide market access to winter DFS, using optimised pricing to provide the best return for business energy users.
“Over the last year energy prices have increased significantly which has created challenges for many businesses and households. This new service provides a fantastic opportunity to generate revenue and offset energy costs.
“National Grid has introduced DFS, and other measures, due to the exceptional conditions we’re facing this winter. It will help to safeguard our energy system against blackouts and disconnections and give energy users a much-needed boost.”
Octopus Energy recently announced it would provide access to the Demand Flexibility Service to its 1.4 million domestic smart meter customers following the successful trial of a similar service earlier this year.
In its Winter Outlook for 2022/23, the ESO said it expected the service to provide around 2GW of demand reduction during tight periods. It has also agreed contracts to keep open 2GW of coal generation that was otherwise due to close this autumn.
However, the ESO said in a worst-case scenario, in which interconnector imports were massively reduced and 10GW of gas generation was unavailable due to fuel shortages, the measures would be insufficient to prevent it from cutting power supplies to some customers to keep the power grid in balance.
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