How does the Demand Flexibility Service work?

What is the Demand Flexibility Service?

The Demand Flexibility Service is operated by the National Energy System Operator (NESO) to try to reduce strain on the grid during periods of cold weather. Under the scheme, energy customers are asked to reduce (or increase) their energy use for a specified length of time (usually an hour or two) and can then earn money back for every kWh of energy they save (or use).

Demand flexibility schemes were first mooted as ways to prevent blackouts, but that risk is relatively low. However, suppliers like British Gas now routinely offer versions of the Demand Flexibility Service to customers with incentives for using less energy at peak times. For many customers, the opportunity to save by shifting energy usage will be available year-round.

How does the Demand Flexibility Service work?

Suppliers notify customers when the date and time of a saving period is finalised - this can often be at short notice, so customers will need to be alert, though they will often be timed to occur when energy usage is at its peak in the early evening.

The schemes are only open to customers with electricity smart meters because suppliers monitor usage through them for the duration of the saving period.

Is the Demand Flexibility Service worth signing up to?

It could be argued that, because the amount of money customers can save is relatively low, demand flexibility schemes are perhaps not worth the effort of using no energy.

However, as a way of helping customers change their usage habits and become more aware of how different appliances and actions drive energy consumption up (sometimes unnecessarily), it should help reduce high demand on the grid in months and years to come.

How to sign up to the Demand Flexibility Service

You can sign up via your supplier, which will then notify you when a Demand Flexibility Service event is due to take place. You can then opt in if you wish. There shouldn't be a penalty for opting in and failing to reduce your energy usage, but supplier rules may differ.

How does Reduce & Earn in the Uswitch app work?

Reduce & Earn is available to sign up to through the Uswitch app when you connect your smart meter. It works in the same way as the other demand flexibility schemes, but with one important difference: customers keep 100% of the money they earn. Additionally, while many suppliers have stopped accepting new applicants for their demand flexibility schemes, Reduce & Earn is still open to new applicants, regardless of who their supplier is.

There is also an Increase & Earn scheme which works in the same way but requires customers to use more energy as opposed to using less.

You can find out more about Reduce & Earn here.