National Grid ESO has launched a new Demand Flexibility Service (DFS) for winter 2023-24, and has made recommendations to service providers based on research by the Centre for Sustainable Energy (CSE) into consumer experiences of the previous winter's scheme1. The first DFS ran in winter 2022, rewarding customers for changing the times when they used the most energy1.
CSE evaluated the 2022-23 service for the ESO, drawing on an opinion poll of a representative sample of the UK population, more than 23,000 responses to an online evaluation survey shared by domestic DFS providers with their customers, participant diaries and follow-up interviews1. It found that 1.6 million households and businesses took part, that 62% of participants said they were satisfied with their experience, and that more than 80% said they would take part again1. Savings from participation "turned out to be small", though many people still reported being happy with the experience, and some described a "feel-good-factor" and learning about energy1.
The research also found that experiences were not uniform. People living with health conditions, those with financial stress, and smaller- or larger-than-average households had less positive experiences, were less able to participate and were less likely to receive the benefits1. CSE's recommendations for future flexibility services include better communication and greater transparency, better advice on what behavioural changes people could make and what benefits they are likely to see, safety mechanisms so that people do not risk their safety by turning off their power, and a greater range of products and services reflecting the diverse needs of the population1.
Claire Dykta, head of markets at National Grid ESO, said of the research:
"This independent research is an important tool for the ESO and industry partners as we look ahead to this coming winter's scheme and beyond. Alongside the formal consultation process and wide-ranging engagement already underway, this analysis will support us in leveraging the success and lessons learned of last year's scheme."
Why it matters for households
The DFS pays households for shifting electricity use away from peak times, so participation depends on being able to move things like charging, laundry or heating to other hours. The evaluation indicates that the barrier to joining was low, with 1.6 million households and businesses taking part, but that the money involved was small1. It also indicates that the ability to take part and benefit is uneven: households with health conditions, those under financial stress, and those smaller or larger than average were less likely to have a positive experience1. For a home's energy independence, the service offers a way to be paid for timing electricity use rather than for using less of it overall, but the research suggests the sums are modest and that the practical scope to shift load varies between households. The recommendations on transparency, advice and safety mechanisms point to where the ESO and providers have been told the service needs to change1. The regulation and policy framework around such services is where these changes would sit.
What happens next
The new DFS for winter 2023-24 has been launched, and the ESO has made recommendations to service providers based on the research findings1. No further dates for the scheme or for any changes to its design have been reported.