UK's NESO to pay users to use less energy

LONDON - The U.K.'s National Energy System Operator (NESO) has announced that its Demand Flexibility Service (DFS) will be available year-round starting Wednesday, 27th November 2024. This initiative, approved by energy regulator Ofgem, marks a significant expansion from the service's previous winter-only availability.

The DFS is designed to incentivize households and businesses to adjust their electricity usage during specific events, offering rewards such as cash, points, or prizes. Participants can sign up through registered service providers, including energy suppliers and aggregators.

In the past two years, the DFS has garnered participation from over 2.6 million entities, contributing to a saving of more than 7,000MWh of electricity. The extended service aims to build on this success by providing more opportunities for consumers and businesses to engage, potentially easing the demand on the electricity grid throughout the year.

NESO's adaptation of the DFS rules allows the service to compete directly with power generators, including gas power stations and wind farms. This integration into the wider electricity market is a strategic move to enhance the role of demand flexibility.

The service's expansion also includes interoperability with other markets, such as the Capacity Market and regional services offered by Distribution Network Operators. This compatibility aims to offer participants a broader range of options and incentives.

Pre-registration for the year-round DFS is open as of today, with NESO identifying energy suppliers and other third parties as registered service providers.

In December, NESO plans to publish a response to its summer call for input on flexibility and a Routes to Market review for demand side flexibility. This forthcoming document, developed in collaboration with DESNZ, Ofgem, and industry partners, is expected to outline strategies for ensuring equitable market access for all types of demand flexibility.

Rebecca Beresford, Director of Markets at NESO, commented on the expansion, emphasizing the organization's enthusiasm for the evolution of the DFS. She highlighted the importance of offering consumers and businesses the ability to participate in the electricity market throughout the entire year.

This announcement is based on a press release statement and reflects NESO's commitment to enhancing demand flexibility as part of a cleaner power system.

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Source: Investing.com