Demand Flexibility Service 2023 (and beyond!)

TheElectricCow

Edit: Ofgem has now officially granted approval of the scheme, the link below provides a good summary for any newcomers this time around:
https://www.nationalgrideso.com/electricity-explained/electricity-and-me/esos-demand-flexibility-service

National Grid appear to have confirmed that they intend to run last year's DFS scheme again this winter, whereby consumers may get paid for load shifting (i.e. avoiding electricity use during peak times) in order to reduce the overall demand on the grid.

Some users were significantly rewarded for their efforts, personally, I am yet to finish using up the credit earned last winter from participating in 75% of the events combined with the government support payments.

https://www.nationalgrideso.com/industry-information/balancing-services/demand-flexibility-service-dfs

I'm yet to pour over the finer details, but a few brief highlights from NGESO are as follows:

The ESO anticipate that there will be 12 tests between November 2023 and March 2024, with the first 6 taking place before the end of 2023 and the latter 6 taking place between January and March 2024

Unlike last winter, all tests will be offered to all registered DFS participants and there will be no concept of onboarding tests. 

*participant here refers to the energy supplier, not the individual consumer

Depending on the volumes which ultimately participate in DFS test events this winter, we may opt to run additional tests – either in March 2024 or shortly thereafter – in which we will engineer price competition between registered DFS participants. 

One of the published documents (procurement rules) does provide some detail on baselines and at first glance appears to suggest the in-day-adjustment will no longer be used, however, there's quite a lot of information provided and I'd need to give it a more thorough reading to understand the content fully.

NGESO will also be presenting an industry webinar on 7th September, so more details may become available at that time.

QrizB

I seem to recall that in-day adjustment had some unexpected consequences, with consumers rewarded for using more electricity. It was a clear candidate for reform.

MattMattMattUK

There were some very odd situations, people who could be paid large amounts by switching from consuming a very small amount because they would normally run from battery power, to exporting a small amount from their battery, but their swing could be engineered to be 1,000% even though their export was only 1kWh, but it meant that they got large payments. The system certainly needs greater thought before the next usage, as an idea it makes sense, but the implementation was very flawed. 

The ideal solution is that we move to fully demand based pricing, but I think we are probably 5+ years away from that as so many people seem vehemently against it. 

matt_drummer

MattMattMattUK said:

There were some very odd situations, people who could be paid large amounts by switching from consuming a very small amount because they would normally run from battery power, to exporting a small amount from their battery, but their swing could be engineered to be 1,000% even though their export was only 1kWh, but it meant that they got large payments. 

That isn't how it worked, if you only cut down by 1 kWh then that is what you got paid for.

The `trick' was to use as much as possible during the in day adjustment period, three hours commencing four hours before the saving session and then use as little as possible during the actual saving session.

If you could us say 60 kWh in the three hour adjustment period and then use nothing in the actual saving session then you would have cut down your use by 20 kWh and be paid on that basis.

That is how large payments were created.

MultiFuelBurner

The one good thing about last year's scheme was that when energy costs were at there peak this was a way to soften the blow with the badly thought out in day adjustment.

Not often you get a treat like that.

Some bright spark will find the calculation and we can see what the new DFS looks like for this winter.

brewerdave

Wasn't there a story of someone making a (small) fortune from changing the times he ran his indoor pool heating ? R.Sunak was hoping for the same windfall this Winter !!

MultiFuelBurner

brewerdave said:

Wasn't there a story of someone making a (small) fortune from changing the times he ran his indoor pool heating ? R.Sunak was hoping for the same windfall this Winter !!

There were definitely people that made £200-400 and those that used the system to its full extent probably never admitted their gains.

It was very useful at a time of media whipping up the energy crisis storm.

Just a heads up about jokes and politics it doesn't always go down well.

matt_drummer

MultiFuelBurner said:

brewerdave said:

Wasn't there a story of someone making a (small) fortune from changing the times he ran his indoor pool heating ? R.Sunak was hoping for the same windfall this Winter !!

There were definitely people that made £200-400 and those that used the system to its full extent probably never admitted their gains.

It was very useful at a time of media whipping up the energy crisis storm.

Most people benefiting to that level did so perfectly legitimately.

Those people that could charge their cars, their battery storage, use their domestic appliances during the in day adjustment period were only using electricity that they would have consumed at another time.

They also minimised their use during the saving period itself.

It is true that some people could benefit more than others but that in itself does not make it wrong or immoral.

I don't know why anybody would not be prepared to `admit' their gains, was there something to be ashamed of?

michaels

It is a shame they can not offer similar sized payments (£3 per kwh) for people exporting (who would not normally do so).  Surely in terms of grid support additonal exports are equivalent to imports and the data is available from smart meters in exactly the same way.

QrizB

michaels said:

It is a shame they can not offer similar sized payments (£3 per kwh) for people exporting (who would not normally do so).  Surely in terms of grid support additonal exports are equivalent to imports and the data is available from smart meters in exactly the same way.

From energy-stats:

Fun Fact! During September 2021 export prices on Outgoing Agile peaked at £2.38 per unit.

https://energy-stats.uk/octopus-agile-outgoing-export-southern-england/

mmmmikey

It seems to me that even without the in day adjustment this scheme is open to gaming and as such somewhat ill-conceived, although in fairness I'm sure that "they" would have thought of this. Anybody who isn't on a TOU tarriff can make money out of this by switching as much of their usage as possible to the peak 16:00 to 19:00 period on a day in, day out basis and then they can do the opposite on the bonus days, which is hardly in the spirit of the scheme.

I suppose that, putting that gripe aside, there is some merit in encouraging people to understand that they can benefit by shifting demand - whether that is done by fair means or foul.

As far as the in day adjustment is concerned, I'd be interested to hear how that's going to work once those of you who are cleverer than me (i.e. most of you :-) - by the time I got to the DFS party last year most of you were drunk and half the alcohol had gone!) have got their heads round it.