Ops Desk News

Demand Flexibility Service (DFS)

Written by Optimisation Desk | Oct 23, 2026, 3:30:56 PM

 

The way we use electricity is changing, and the way we manage it needs to change too.

Today, flexibility is recognised as a critical part of the solution and has become an important part of keeping the grid balanced.

That's where DFS comes in.

Originally launched as a winter emergency scheme, DFS has recently evolved into a year-round flexibility market, giving businesses more opportunities to get involved and be rewarded for temporarily reducing, increasing or shifting electricity consumption when the grid needs support during National Energy System Operator (NESO) demand flexibility events.

In April 2026, changes to the scheme made participation much more accessible:

    • Bi-directional flexibility options

    • Zonal procurement

    • Lower participation thresholds of just 0.1 megawatts (MW) 

    • Self-nominated baselines

These updates have opened the door for many more organisations to take part, with the scheme already delivering significant value.

With winter approaching and an increase in demand flexibility events expected between November and March, now is a good time to explore how DFS could benefit your business.

 

Why should I take part?

Flexibility can often be difficult to understand and may involve significant time, investment and resources before a benefit is realised.

DFS is different. It allows you to unlock value from flexibility you already have.

There's no need to change your energy supply contract, and participation is completely optional. You can sign up to the scheme and then decide on an event-by-event basis whether taking part works for your operations.

In other words, you stay in control while creating a potential new revenue stream.

 

How can we help?

Participating in flexibility markets through DFS involves far more than simply reducing or increasing your electricity consumption.

As a registered participant in NESO's DFS, npower Business Solutions (nBS) manages the process on your behalf, from market participation and event notifications through to reporting and settlement. We act as your partner, making participation as simple as possible and providing a straightforward route into flexibility markets without the administrative burden.

Since DFS was first implemented in winter 2022/23, it's encouraging to see NESO continuing to evolve the scheme and make flexibility markets more accessible to businesses of all sizes. These simpler routes into flexibility mean that we at the Optimisation Desk can help more organisations engage with the energy transition, support grid stability and potentially unlock value in a way that works for them.

Want to know more about DFS? Contact our team