National Grid ESO has confirmed that the Demand Flexibility Service (DFS) will continue to be developed for use in managing periods of high demand on a year-round basis, according to a Nesta report on smart prepayment customers' experience of the service, published on 7 October 20241.
The confirmation is reported in the "Future flexibility" section of that report, which examines how participants in Power Payback, a flexibility offering from Utilita, viewed the service and a future in which flexibility plays a larger role in how households use electricity1. Nesta describes Power Payback as the first exposure many of its interviewees had to modern flexibility offerings1.
"National Grid ESO recently confirmed that the DFS will continue to be developed for use in managing periods of high demand on a year-round basis"
The report sets out what participants wanted from event-based schemes: more warning of events, a calendar style notification of possible events for the month, greater variation in the times and days events took place, and real-time feedback during events so consumption could be tracked1. Nesta notes that more warning would have been hard to achieve because of the limited notice period DFS operators receive that events will be needed, and that this period may become even shorter as the service evolves, potentially moving from day-ahead to within-day procurement1.
Participants also described a wider flexibility landscape in which occasional, short-notice events are joined by time of use tariffs with fixed or variable rates1. Familiarity with legacy time of use tariffs such as Economy 7, which charge a cheaper off-peak rate overnight, was more common than familiarity with modern flexibility tariffs; one participant mentioned British Gas weekend savings tariffs, and forum analysis showed more evidence of familiarity with the Agile tariff from Octopus, including discussion of how it interacts with the DFS1. Views on fixed flexibility products were mixed and tended to be more negative than positive, with barriers cited including fixed schedules with younger children, a preference for a flat tariff for reasons of familiarity, and concern about running appliances overnight1.
Awareness of why flexibility is needed was generally low, the report says. Relieving strain on the grid at peak times was mentioned occasionally, but participants more commonly understood Power Payback as being about saving energy in general, improving knowledge about energy saving, and supporting engagement with Utilita1. Singles, couples and older people who may be at home during the day were seen as more likely to be able to benefit, and concerns about the fairness of that were not generally expressed1.
Why it matters for households
The DFS pays households for shifting electricity use away from peak periods, so a decision to keep developing it year-round points to a service that is not confined to winter1. For a household, participation depends on being able to move demand when an event is called, often at short notice, which the report identifies as a practical difficulty for some families, particularly those with children1. The report also indicates that event-based schemes are expected to sit alongside time of use tariffs, where the price of electricity varies by time of day rather than by event, and that familiarity with these products is uneven1. How far a home can benefit therefore turns on its daily routine and on the metering and tariff arrangements it has, rather than on the scheme alone. The report does not give rates, payments or eligibility rules for the DFS.
What happens next
Nesta says the next section of its work describes the development of user personas, based on this research, that it and others can use when thinking about inclusive service design1. The report also notes the possibility that the notice period DFS operators receive could shorten as the service evolves, potentially moving from day-ahead to within-day procurement1. No further dates for the service's development are given in the report.
Sources1 cited
- Future flexibility | Nesta, nesta.org.uk