Millions of households could see significant savings on their energy bills this year as the National Grid’s “Demand Flexibility Service” (DFS) is set to operate year-round.
Originally launched in 2022 as a winter scheme, the DFS rewards consumers for reducing electricity usage during peak hours.
The National Electricity System Operator (NESO) has confirmed plans to reactivate the service in the coming months, subject to Ofgem’s approval.
This expansion means more customers can get involved potentially leading to increased savings throughout the year.
Customers can now save money throughout the year rather than just the winter months.
The DFS has proven successful, attracting 2.2 million participants and 43 providers last year. Under the scheme, households and businesses can earn money, points, or prizes by shifting their energy use outside peak times.
The expansion of the DFS stems from a reduced risk of blackouts this winter. With Britain facing a lower likelihood of power loss, the scheme has evolved from an emergency backup to a regular feature of the UK’s energy strategy.
Participation in the DFS is open to households and businesses with smart meters
PA
Participation in the DFS is open to households and businesses with smart meters whose suppliers are part of the scheme.
Consumers can register through their energy provider in the coming months. To maximise savings, experts advise turning off costly appliances during peak hours rather than simply switching off lights.
Last year, major companies like Octopus Energy, British Gas, OVO, and EDF participated. The National Grid paid a minimum of £3 for every kilowatt-hour saved during six of the 12 test events.
However, the amount received may vary depending on the supplier’s offer.
Craig Dyke, director of system operations at NESO, commented on the improved outlook and said: “As we publish our first Winter Outlook as the National Energy System Operator, it is positive to see that margins forecast for this winter are the highest since 2019/20.”
He added: “While our margin assessment has improved from previous winters, we are continuing to monitor risks and uncertainties and, if necessary, will take steps to build resilience.”
Dyke assured that the energy industry will continue to prepare for various scenarios to ensure readiness for the coming winter.
The registration process for this year’s DFS is expected to open in the coming months, following regulatory approval from Ofgem.
A list of registered service providers will be published on the NESO website and updated throughout the winter.
While major energy firms like Octopus Energy, British Gas, and EDF participated last year, it’s not yet clear how the revised scheme will operate.
Each provider will have its own eligibility criteria and reward structure.
Consumers are advised to check with their suppliers for specific details on implementation and potential earnings.
