In an energy system powered by renewable energy generation that can be intermittent, it is crucial that consumers are able to be flexible with when and how they consume energy, to help balance a decarbonised grid. In fact, the National Energy System Operator (NESO) predicts that we will need four-to-five times more flexibility by 2030, in order to reach the UK’s Clean Power targets¹. In addition to supporting the grid, flexibility optimisation enables organisations to unlock new revenue opportunities, such as participating in flexibility markets – services which offer financial incentives for consumers to adjust their electricity usage.  

The Demand Flexibility Service (DFS) is one of these markets, and we’ve broken down how it works and how organisations can get involved:

What is the DFS? 

DFS – an ancillary support service operated by the National Energy System Operation (NESO) – is a mechanism that can be triggered when there is high electricity demand, rewarding consumers for shifting, increasing or limiting their electricity usage to help balance the grid. DFS volume is most frequently procured through turn-down and turn-up services: 

• Turn-down participation rewards customers for decreasing their asset consumption during peak periods, for example in the evenings. 

• Turn-up participation can allow customers to be paid to use more electricity through increased asset consumption during periods of high renewable generation and low demand, such as on windy nights.

How does the DFS operate? 

Through DFS, suppliers, aggregators and asset owners can bid flexibility from on-site assets, such as Battery Energy Storage Systems (BESS), electric vehicle (EV) charging, heating and industrial loads, in daily auctions. DFS has evolved since it was first established in 2022, with more opportunities for organisations to participate. It is now operational all year round, with more opportunities for Industrial & Commercial (I&C) businesses to get involved, more routes for participation, and lower entry thresholds (lowering from 1MW to 0.1MW). If businesses are unable to meet this 0.1MW threshold, customers in the same grid supply point can be aggregated together to participate², allowing organisations with smaller consumption levels to get involved. 

These auctions are within-day, which means that service requirements are published on the day of the auction, with successful participants expected to deliver the accepted volume within 24 hours of the contracts being awarded. The contracts are for 30-minute periods, which means that customers are not tied into longstanding agreements. NESO does not procure DFS every day, only as the system requires it, and there is no obligation to participate after registering, so it’s a low-risk service for consumers. 

You can find out more about the DFS here: https://www.neso.energy/data-portal/demand-flexibility, DFS Utilisation Report.

To maximise value from an on-site asset or flexible loads of electricity, consumers can ‘stack’ this flexibility market with other flexibility optimisation revenue streams – using a single asset to receive revenue from multiple services at the same time, with the same capacity. Through participation in DFS, consumers could potentially make over £200/MW³, and DFS is a growing market, with continuously improving opportunities for consumers to earn financial rewards for supporting the grid. As of 2026, Bryt Energy is actively able to help our customers unlock a new revenue stream through participating in DFS. 

For more information, click here, or get in touch with our team of experts at energytransition@brytenergy.co.uk or on 0330 053 8620.