Energy regulator Ofgem has granted approval to the ESO’s Demand Flexibility Service (DFS) which will be available from 30 October 2023. Last winter the option successfully saved over 3,300MWh across 22 events. This year the system operator says it is keen for more consumers and businesses, large and small, to take advantage of this opportunity to reduce their energy bills and carbon footprint.
DFS incentivises households with smart meters, as well as industrial and commercial users, to voluntarily flex the time they use their electricity to help manage the system this winter during periods where margins are tightest.
End consumers can participate in the service through registered service providers. Last winter, the ESO had 31 registered service providers.
Alongside potential live uses of the service to balance the network this winter, the ESO will endeavour to run 12 test events. Electricity suppliers, aggregators and businesses who directly contract with eth ESO will receive a guaranteed acceptance price of £3/kWh for at least six of the test events.

The ESO will be kicking off the tests in November as DFS delivers for its second year. Claire Dykta, head of markets at the ESO, said: “The ESO is delighted that Ofgem has formally approved the return of our Demand Flexibility Service this winter. Households and businesses across Great Britain can now benefit from actively participating in helping balance the network during tight winter periods and be incentivised to do so”.
Meanwhile the Environment Agency has formally agreed that at times when electricity supply is tight, power plant operators can relax restrictions that reduce pollution. Until 31 December the Environment Agency, at request of government, has allowed generators to temporarily run beyond the annual running hour limits written into their environmental permit, when this is needed to ensure electricity security. 
The running hour limits will not be enforced when an Electricity Margin Notice (EMN) issued by the Electricity System Operator (ESO). The electricity margin notice must have been in place during the 24 hours before the notified periods of tight electricity margins. 
The extra hours used will be taken off next years permitted hours. For most generators, these will renew on 1 January 2024. Therefore, the Regulatory Policy Statement will only be in place until then.  
The change applies to plants of 50MW and above; smaller units with limited running hours have to apply for a permit variation with the Environment Agency.