Energy regulator Ofgem has conformed that the new market facilitator for local energy flexibility will be Elexon, the company that currently has responsibilities in market settlement and managing low carbon subsidy flows, as well as in delivering market-wide half hourly settlement by December 2026. Elexon was chosen over the new National Energy System Operatpr (NESO) for the role.
Ofgem has set a target for the market facilitator to begin operations by early 2026 at the latest.
This will follow the successful completion of three workstreams:
• Detailed design of the market facilitator role and functions.
• Development of Modifications to the BSC to allow Elexon to take on the role, and establish the governance and funding model for it.
• Working across the industry and with the Energy Networks Associations’ Open Networks project to maintain grow flexibility markets, in advance of Elexon beginning its co-ordinating role.

Elexon will work closely with Ofgem, NESO, ENA, local networks, and flexibility service providers to drive alignment between local and national flexibility markets and remove any barriers.
Ofgem has also launched a consultation on a common Flexibility Market Asset Registration (FMAR) system, which will provide a single point of registration for flexible consumer assets such as electric vehicle chargers, heat pumps and home batteries that can participate in all local and national flexibility markets. This would move away from the present system where flexibility service providers (, who aggregate assets on behalf of consumers, must sign up multiple times for each individual market.
Ofgem Director Eleanor Warburton, said: “To successfully operate the developing low carbon energy system of the future we need more flexible tools to make the best use of our intermittent wind and solar potential along with network and consumer assets to meet demand.”
She added: “We are already starting to see real acceleration in small scale flexible energy use as consumers increasingly access cheaper energy through more flexible consumption.
“As market facilitator Elexon will be able to coordinate and align local and national energy markets to unlock the full value of flexibility. Meanwhile asset registration will create a streamlined one-stop sign-up point, which will help maximise consumer participation in flexible consumption.”