UNC0856: Introduction of Trials for Non-Daily Metered Demand Side Response - decision

Summary

Ofgem approved UNC0856, enabling trials for demand side response from non-daily metered gas customers. The modification allows gas suppliers and aggregators to test mechanisms for reducing gas demand during peak periods without requiring smart meters. These trials will establish whether existing settlement processes can accommodate demand flexibility from smaller commercial and domestic gas customers.

Why it matters

This creates a pathway for gas demand flexibility to support electricity system management during peak periods, when gas-fired generation sets marginal prices. The trials address a market failure where smaller gas customers cannot currently monetise demand reduction because monthly settlement cannot capture short-term consumption changes.

Key facts

• •Approved 19 March 2024
• •Applies to non-daily metered gas customers
• •Enables demand side response trials without smart meter requirements

Timeline

Areas affected