Additional tools added to Demand Flexibility Service | National Energy System Operator
Summary
NESO expands its Demand Flexibility Service to allow participants to be rewarded for increasing electricity consumption during periods of excess supply, alongside existing rewards for demand reduction. The service threshold drops from 1MW to 0.1MW, opening participation to smaller suppliers and businesses. Over 2.46 million businesses and consumers have already signed up.
Why it matters
This creates a bidirectional market for demand response that prices excess supply rather than simply queuing it, though the mechanism remains administratively triggered rather than price-responsive. As such, it treats symptoms of grid inflexibility rather than addressing the underlying constraint access and pricing problems that create excess supply periods.
Key facts
- •2.46 million participants already enrolled
- •Participation threshold reduced from 1MW to 0.1MW
- •Service now rewards both demand reduction and demand increases
- •Approved by Ofgem for implementation
Areas affected
Related programmes
Memo
Additional tools added to Demand Flexibility Service | National Energy System Operator Show/Hide Menu Toggle Add to favourites Close tooltip Sign in to add this page to your favourites Sign in or register Show favourites Close Close tooltip Sign in or register to manage your favourites Sign in or register Help You are now signed in Visit My NESO account to view and manage your dataset subscriptions. Maybe later Go to your account Additional tools added to Demand Flexibility Service Balancing services 25 Mar 2026 - 2 minute read Our Demand Flexibility Service (DFS) is set to undergo a major shakeup following approval from Ofgem. For the first time ever, the new service design will enhance year-round participation by offering innovative incentives to both consumers and businesses. This year, participants in the service will be able for the first time to be rewarded by their energy supplier or third-party aggregator for increasing electricity consumption during periods when Great Britain has excess electricity supplies, as well as for shifting their electricity usage away from peak times. This dual approach will allow users to benefit from strategic electricity use throughout the day. Since its launch, over 2.46 million businesses and consumers have already signed up to take part in DFS events, highlighting its growing popularity and the impact electricity use at home and in businesses can make. The service's evolution includes reducing the participation threshold from 1MW to 0.1MW, making it more accessible for smaller energy suppliers and businesses to engage directly with NESO. Are you a business looking to get involved? At NESO, we’re committed to supporting the ambitions outlined in the Clean Flexibility Roadmap. That’s why we’re providing dedicated 1:1 support through our Power Responsive team to help businesses navigate and participate in demand-side flexibility. Contact our Power Responsive team to explore how your organisation can benefit. Want to take part at home? We’ve compiled a list of all the registered providers taking part in the Demand Flexibility Service. Click below to see if your provider offers the service and how you can contact them about taking part. DFS registered providers Rebecca Beresford, Director of Markets at NESO: “There are certain times when the GB system is fortunate to have plentiful supplies of low carbon electricity. Enabling consumers to benefit by increasing their electricity use at those times is a critical step to making demand side flexibility work for consumers and the system. Our evolved service design will maximise the value for consumers and businesses looking to participate in flexibility. We are excited to see participation continue to grow and build on the success of DFS to date. Demand Flexibility Service Similar reading Balancing services Millions of households and businesses free to reap rewards… 19 Mar 2026 - 4 minute read Millions of British households and businesses may now be able to benefit from greater flexibility… Balancing services New contracts awarded under the Mid-Term (Y-1) Stability… 24 Feb 2026 - 1 minute read We’ve awarded five contracts across four providers to secure 7.3 GVA.s of inertia between October… Balancing services Call to Industry: Unlocking Energy Flexibility across Great… 30 Oct 2025 - 2 minute read Our Power Responsive programme has launched a new Call to Industry inviting large industrial and… logo--facebook