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The National Energy System Operator (NESO) is consulting on what price point would convince business customers to consider varying their electricity demand in response to NESO requests.
The question comes as part of a consultation – closing shortly on 14 October – that will feed in to NESO’s plans to use customer flexibility to minimise electricity costs. Along with questions about the minimum financial incentive required to be a flexible customer, the consultation also asks about what flexibility businesses might have, what is stopping businesses from joining the initiative, and whether they would consider taking part in future.
The NESO wants more non-domestic customers to be responsive because in operating the electricity system minute by minute, it has to balance supply and demand, and ensure frequency and voltage remain stable. That requires it to call on participants to increase or reduce their power demand for periods from a few minutes to several hours. In the past it called on power stations to dial up or down to do this, but using customer flexibility is often cheaper, cleaner and more flexible.
NESO already taps into customer flexibility via its ‘Power Responsive’ programme. Now it says, “We’re developing a strategy to unlock greater customer-led flexibility for non-domestic customers.” It wants to expand Power Responsive and says, “We want to hear your views on untapped flexibility potential including barriers and enablers to increase participation in our flexibility services.” The survey will “influence a strategy designed to benefit your business and the wider energy system”.
The survey comes as NESO is taking other steps to try to make it easier for businesses to take part, such as simplifying metering requirements.
Complete the survey here:
