Understanding the ESO’s Demand Flexibility Service

An effort to reduce energy usage will reward businesses for cutting energy usage at peak times. So, what does this mean for your organisation and how can Consultiv Utilities help?

In an effort to maintain energy security during winter, the Energy System Operator (ESO) has developed the Demand Flexibility Service. The scheme aims to incentivise customers to avoid using their electricity during peak hours.

Taking advantage of this opportunity can help households and companies earn money for responsible electricity use, softening the blow of the rising bills many of us are facing. Consultiv Utilities can provide support and guidance for those interested in the scheme, thanks to our innovative Customer Portal.

What is the Demand Flexibility Service?

The Demand Flexibility Service (DFS) has been developed to allow the ESO to gain additional flexibility when national demand is at its highest – during peak winter days – which is not currently accessible to the ESO in real-time.

This new, innovative service rewards consumers and businesses through financial incentives to voluntarily flex the time they use their electricity based on predicted peak usage hours. The service is about participants reducing electricity use where they can, rather than asking businesses to go without electricity in times of need. Participating in the service is completely optional and customers do not have to take part if they don’t want to – even if they have signed up to take part in DFS events.

How can the Consultiv Portal help?

If the DFS scheme is of interest to you, Consultiv Utilities can provide assistance by monitoring your consumption, thanks to our bespoke customer portal: Consultiv Connect. This monitors businesses’ energy consumption and provides half hourly data required for each business applying for the scheme, taking the hard work out of our client’s hands. We can also provide regular updates and reminders to keep businesses informed throughout the scheme.

The Consultiv Connect portal is a powerful digital tool for organisations wanting an easier way to monitor and manage their utilities.  Our user-friendly, intuitive and fully customisable dashboard provides valuable insights and genuine convenience to enhance the customer experience and ensure clients always have full visibility. Track consumption, expenditure and emissions all in one place, anytime and anywhere.

We’ve partnered with Perse Technology to provide our customers with access to the DFS. Having passed rigorous ESO checks, Perse Technology were one of the first DFS “Aggregators” accredited by National Grid.

How does the Demand Flexibility Service work?

There are two types of events, test and live. The test events are for National Grid to assess how much load “could” be reduced. Live events are when National Grid foresee a shortage of generation to meet demand. Perse Technology will send an event signal 24 hours before a DFS event and within day (usually before 10.00) for a live event.

The registered businesses half hourly data consumption will be measured over an average of the 10-day period prior to the event period, against actual consumption during the DFS event period. Money will be earned where there is a reduction, however small.

From there, participating clients should aim to reduce consumption the following day – typically between 16:00hrs and 19:00hrs. Perse Technology will send email and mobile reminders at set intervals during the event day.

Perse will then reconcile any demand reductions you have made with the ESO 14 days after the event and will transfer you the funds you have earned.

Why is it necessary?

While the DFS is a welcome service for customers and businesses looking to earn extra money from responsible energy usage, it is also good for balancing the grid and promoting flexible energy use. This, in turn, offers an environmental benefit. When energy supply cannot keep up with demand, non-renewable energy options are more likely to be explored. By spreading out the usage of energy, it helps to make the flow of renewable energy more manageable.

What could you get paid?

ESO reports that participating businesses could earn upwards of £2.10 per kWh of energy reduction, meaning a 20kw demand reduction for two consecutive half-hourly periods could result in £42. What’s more, there is no upfront cost for participating (Perse Technology will ensure businesses retain 70% of the financial benefit generated). There are no penalties if you do not reduce your demand – you simply don’t get the benefits.

Who can take part in the Demand Flexibility Service?

Supermarkets, pubs, farms, factories, retailers, office-based businesses and public sector organisations can all take part with the right provider. In fact, this service is open to as many participants as possible, who need to meet the following requirements:

• All assets would require half-hourly metering.
• All assets must be able to respond for a minimum of 30 minutes.
• 1 MW min unit size/100 MW max unit size.
• Providers need to be able to respond to instructions for day-ahead delivery.
• Providers must provide relevant half-hourly metering and baselining data to demonstrate delivery of demand reduction.

Please note, businesses can only sign up to one Registered DFS participant at a time.

The following exclusions apply:

• Assets that are dispatchable via the Balancing Mechanism or participate in Ancillary services or DNO services.
• Assets that have a Capacity Market contract

Register your interest today

If you are keen to join the programme, you can register your interest online today by clicking on this link HERE

You can also speak to your Account Manager about how to join. If you’re not yet a Consultiv customer, you will be asked to complete the online form above. We’re happy to help you get involved in this exciting new opportunity. For further information, leave your details and a short message, and a member of our team will be happy to get in touch.