Elexon is in discussions with seven companies that are interested in becoming independent aggregators of electricity flexibility that will allow smaller parties to participate in the wholesale electricity market.
The announcement came as the opportunity opened for independent aggregators, also known as Virtual Lead Parties (VLPs), to register to participate in the market, following a rule change.
In the past the independent aggregators, which are not affiliated with licensed electricity suppliers, were only allowed to offer services in the Balancing Mechanism, on behalf of the flexibility providers they represent.
Elexon says the rule change will help decarbonisation of the electricity system, as many independent aggregators represent consumers, including shops and businesses, that are prepared to either increase or reduce power consumption and help to keep the electricity system in balance.
Elexon Chief Executive Peter Stanley said: “Flexibility must play a much more prominent role in managing supply and demand if the energy sector is to meet the Government’s Clean Power 2030 and Net Zero targets.” A four-fold increase in flexibility is needed, and he said, “During 2025, Elexon will be transitioning into the market facilitator role, and preparing to deliver this from early 2026. As the market facilitator, Elexon will be fully focussed on working with flexibility market participants and Ofgem to deliver more open, coordinated and transparent local flexibility markets, and supporting their growth.”
Since April 2025, Elexon has helped 40 companies register for a range of roles in the electricity market. This includes six companies that have registered as VLPs to participate in the Balancing Mechanism.