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British businesses are unaware of the opportunities around demand side response (DSR) at times of high national demand, fresh research from Npower has revealed.
Less than half the retailers who are eligible for the January 2016 transitional capacity auction have said they would be taking part, and 64 per cent have called for more government information about DSR, according to figures from Npower Business Solutions.
A majority of eligible businesses, 75 per cent, said they were not using demand side response simply because they did not know enough about it in order to make an informed decision.
Through the DSR scheme businesses are incentivised financially to lower or shift their electricity use at peak times, creating a more resilient energy network and allowing companies to unlock flexibility in existing equipment and earn income. The National Grid recently argued that there is a growing role for DSR by large energy users like Sainsbury’s.
Npower Business Solutions’ director of markets and innovation Wayne Mitchell, said: “By taking part in DSR, firms can potentially reduce their energy costs and receive payments for any excess energy exported back into the Grid. They can also benefit from the flexibility of supply around costly periods such as winter triads.”
More than half of businesses who do use DSR do so in order to reduce costs by using the revenues to offset their energy spending.
Mitchell added: “The first ever DSR capacity auction represents a landmark moment for the government to create a more varied and resilient energy network.
“However, given this strong opportunity it is very disappointing that there appears to be a lack of knowledge about the capacity auction and DSR more generally.
“With many companies doing everything they can to save money, DSR presents a potential opportunity for businesses to positively impact their bottom-line. The Government and the energy industry share an equal responsibility to make sure businesses possess the information they need to take advantage of DSR in the future.”
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