Demand Flexibility Services: What They Are and Whether Households Can Join
- The service is run by NESO and was introduced in winter 2022.
- It became year-round on 27 November 2024.
- Households take part through a supplier or aggregator, and you need a working smart meter.
- Taking part is optional for each event, and NESO says there is no penalty if you do not change your use.
- A later design, approved by Ofgem on 25 March 2026, also allows rewards for using more electricity when supply is plentiful.
The Demand Flexibility Service pays households and businesses to change when they use electricity, so the grid copes with tight moments. You do not sign up with the grid operator: you join through a supplier or aggregator that offers it.
What the service is
NESO, the electricity system operator for Great Britain, uses the Demand Flexibility Service as a tool when the system margin is tight. According to NESO's own explanation, it pays people to change when they use electricity, which usually means using less at busy times.
It began in winter 2022 and was extended to run all year from 27 November 2024. That change matters: it is now a standing service, not a winter emergency scheme.
How a household takes part
NESO pays the provider, not you directly. Households in England, Scotland and Wales join through a supplier or aggregator that is registered for the service, and the provider contacts you when an event is called. A working smart meter is needed so that your use can be measured.
NESO's update on the new-look service says rewards are set by the provider and can be money, points or prizes. Ofgem approved the evolved design on 25 March 2026, and NESO said its control room could use it from 14 April. In the new design, people can also be rewarded for using more electricity when supply is plentiful, and the minimum size for direct participants drops from 1 MW to 0.1 MW.
Where a home battery fits
A battery is a natural fit in principle. It can supply your home during an event, so your draw from the grid falls without you switching anything off, and it can charge when there is plenty of supply. We could not confirm which suppliers currently count battery discharge towards the reward, or how they measure your usual use, so ask before you assume.
If you are on a smart tariff already, you may be doing part of this without being paid for it. Our guide to how virtual power plants use home batteries covers a related route, where a company controls many batteries together.
Check the date
Provider offers change. Treat anything you read here, including the NESO dates, as a starting point and confirm the current terms with the supplier.
Questions to ask a provider
Before joining, ask the supplier or aggregator for the answers in writing.
- Does the offer cover homes with a battery, and how is battery use counted?
- How are rewards paid, and is there a minimum before they pay out?
- How much notice do you get, and can you opt out of an event?
- Does joining change the tariff you are on?
Common questions
Can I sign up with NESO directly?
No. NESO says households take part through a supplier or aggregator that is registered for the service, and NESO pays the provider.
Do I need a smart meter?
NESO lists a working smart meter among the requirements, so your use can be measured accurately.
What if I ignore an event?
NESO says taking part is optional for each event and you generally just earn no reward, with no penalty.
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