The Electricity System Operator (ESO) has outlined its initial design proposal for the future of the Demand Flexibility Service (DFS).
Following the ESO’s recent winter outlook, the organisation has confirmed that DFS will not be used as a winter contingency service for the 2024/25 winter season.
Instead, the ESO proposes enhancements to DFS, allowing it to operate year-round as a regular commercial service.
DFS will continue to support the ESO’s control room during peak demand periods, offering households and businesses the chance to benefit from flexible electricity usage.
The ESO plans to consult with the industry on the proposed design before seeking regulatory approval from Ofgem.
Last year, DFS delivered over 3.7 GWh of electricity, with more than 2.6 million households and businesses participating to adjust their electricity consumption at key times.
The de-rated margin, the expected excess generation available during peak demand, is projected to be higher for winter 2024/25 (5.6GW / 9.4%) compared to the previous winter (4.4GW / 7.4%).
As a result, the need for DFS as a winter contingency service has decreased, prompting the ESO to evolve and expand the service to support high demand periods throughout the year.
The changes will enable DFS to compete with other commercial tools used by the ESO control room.
Additionally, DFS providers and customers will be able to combine the service with other revenue streams, enhancing opportunities for consumers to benefit from flexible electricity use.
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