Demand Flexibility Service (DFS)
The Demand Flexibility Service (DFS) helps homes and businesses get involved in the electricity market. It gives them rewards for using less electricity or changing when they use it, through their suppliers.
DFS started in winter of 22/23 as part of a plan to handle emergencies during the winter. Its main goal was to lower demand during evening peak periods, reducing the need for additional electricity to be created by power stations, which would have been more expensive for consumers.
DFS is seen as a new and innovative idea because it makes it simpler for homes and businesses to join the electricity flexibility market than more established markets. The service received industry recognition, winning the Whole Energy System Innovation category at the Green Energy Awards and the Net Zero Engagement category at the Utility Week Awards in 2023!
On 27 Nov 2024, the DFS transitioned to function as an in-merit margin tool. This change provided the NESO with an additional option when addressing margin requirements.
If you would like to learn more about DFS, or speak to our team, please email us.
DFS - EBR Article 18 Consultation update – Ofgem Submission - January 2026
On 30 January, NESO submitted its proposed DFS Service Terms and Procurement Rules to Ofgem for review, with a decision expected by 30 March. Following industry consultation, NESO has also published its responses to feedback. Click here and open the Ofgem Submission Documents tab to view the proposed service design submission and contractual terms.
We have released a recording detailing the updated DFS service design and changes submitted to Ofgem, you can listen to it and view the slides. We have produced an updated our DFS Market Guidance report providing an overview of Positive and Negative margin. With many new changes to the proposed updated DFS, we have produced an onboarding document for current and new providers to understand how they can prepare for day one of the evolved service, subject to Ofgem approval.
If you have any questions or would like to schedule a call, you can contact the DFS team via email.
The indicative timeframe for the consultation is outlined below.
| Completed | Published | Live | Dec - Jan | Jan - March | March - April 2026 |
|---|---|---|---|---|---|
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Registered providers
The merit-based margin tool for positive margin (demand turn down) remains active during the consultation and throughout this winter for the DFS. Consumers or businesses can participate by signing up with one of our registered providers. We have created two tables that list all the registered providers in the Demand Flexibility Service. The first table is for domestic households and small businesses, while the second is for all other businesses, they also show if the providers are members of the FlexAssure compliance scheme. If you interested in becoming a registered provider, please email the DFS team.
Ofgem Submission Documents
Industry Consultation Documents
Supporting Documents
DFS – EBR Article 18 Consultation launch video
Watch our recording to learn more about the changes we are proposing for the DFS in our EBR Article 18 Consultation.
Post Consultation Update and Preparing for Go Live Recording
Watch our recording detailing the updated DFS service design and changes submitted to Ofgem
| Name | Published Sort ascending |
|---|---|
| DFS API Schema document v1.5 | 26 Aug 2025 |
| DFS Participation Guidance document | 2 Jun 2025 |
| DFS Stacking List v1 | 7 Oct 2024 |
| DFS Market Guidance | 7 Oct 2024 |
| DFS Communication Principles v5 | 3 Oct 2024 |
| DFS Pricing Pro-Forma July 2024 | 31 Jul 2024 |
Webinar and industry engagement
DFS Evolution Update
Please see recording below sharing our latest updates around the evolution of the Demand Flexibility Service. In this presentation we cover how we are planning to expand the existing service capability as well as some potential timelines.
Watch the recording Download the slides
The DFS Winter 2024/2025 Overview Report
The DFS became an in-merit service tool on the 27 November 2024 and we have published a report covering the winter period (27 November 2024 to 28 March 2025) looking at the service changes, highlighting all the winter events and including some key statistics.
DFS Merit Based Tool update February 2025
We have issued a recording to offer an overview of the service developments, performance analysis of events, insights, key statistics, and market guidance.
DFS Post Consultation Update
DFS Evolution Design Proposal
Domestic households
More information for households looking to get involved in DFS can be found on our explainer document.
Industry and commercial
Please read our open letter to find out more about participating in DFS as a business.
Are you interested in becoming a registered provider?
Here’s a quick guide to getting set up.
1: Contact our Demand Flexibility Service team to arrange an introductory call
Let us know about your campaign and your audience and we can talk you through the process and answer any questions you may have. You can reach us at [email protected]
2: Register on the Single Markets Platform (SMP)
This is our platform to create and register units for DFS and to take part in a DFS event. This is also where your contract with NESO is submitted. Take a look at our DFS unit registration provider manual for more details.
3: Complete the DFS IT process check
Once you are ready, we'll agree a date for an IT process check to make sure you're prepared for an event. This check will cover the API, data transfers, data formatting, and more.
4: Submit an online form to become a registered provider on our website
Once you have completed all of your onboarding steps and submitted the form, your organisation will appear on our website as a DFS registered provider. This is so that consumers can find out which organisations are taking part in the service, and how to sign up.
Request to become a DFS registered provider
5: Once all steps are completed, you’ll be ready to participate in a Demand Flexibility Service event
As part of the process, you'll need to submit a number of files to us, including your initial unit meter point schedule file and onboarding weekly indicative forecast.
The participation guidance document will have full details for you to follow.
2024 EBR Article 18 consultation
DFS Evolution – Initial Service Design Proposal
| Name | Published Sort ascending |
|---|---|
| DFS Smart Meter Evaluation Report | 6 Nov 2025 |
| Registered provider list 22-23 | 30 Jun 2023 |
| DFS Show and Listen 08.02.23 Workshop Slides | 3 Mar 2023 |
| DFS Show and Listen 08.02.23 Collated Feedback | 3 Mar 2023 |
| DFS Show and Listen 08.02.23 Collated Feedback Summary | 3 Mar 2023 |
| DFS Participation Guidance Document v6 | 8 Feb 2023 |
| DFS Communication Principles Document v3 | 16 Jan 2023 |
| Ofgem Decision on the Demand Flexibility Service | 4 Nov 2022 |
| Ofgem EBR Article 18 DFS Consultation Mapping Document | 4 Nov 2022 |
| DFS Declaration and Terms and Conditions | 4 Nov 2022 |
Webinars and industry engagement
Winter 23/24 – End of Year Report
We have produced a Demand Flexibility Service Winter 23/24 End of Year Report to provide industry with an overview on headline statistics from this winter. It covers a number of topics including an overview of the service design changes, key learnings, test analysis, commerciality of DFS and industry feedback.
| Download the DFS winter review |
Share your ideas on the future of the Demand Flexibility Service (DFS)
Are you interested in the evolution of DFS? Following our recent webinar, please share your feedback and ideas with us on what the DFS could look like moving forward.
| Download the questionnaire summary |
DFS overview and what's next webinar – March 2024
View the content from our webinar held on 22 March to learn about the performance and use of DFS during winter 23/24 so far and the future of DFS.
| Watch the webinar | Download the slides | Download the Q&A |
DFS winter review 22/23 – 30 August 2023
DFS Winter 2022/23 review which details the results from 20 Tests and 2 Live events.
| Download the DFS winter review |
Consumer evaluation webinar – 6 July 2023
The ESO has worked with the Centre for Sustainable Energy (CSE) to carry out an evaluation of DFS from over 23,500 consumer perspectives. This includes who participated, why they did so and how they took part.
The work also explores the barriers to taking part in DFS and benefits of participating as well as findings of the social research carried out via diaries, opinion poll, surveys and interviews.
| Download the slides | Watch the webinar | Download the report |
Pre-consultation webinar - 9 June 2023
A recording and the slides from our pre-consultation webinar held on 9 June outlining the next steps for DFS winter 23/24 and sharing our the final design proposals.
| Download the slides | Watch the recording | Download the Q&A |
Deep dive workshop 3 - 27 April 2023
The third of our series of deep dive workshops, covering process and operational delivery.
| Download the slides | Watch the recording |
Deep dive workshop 2 - 25 April 2023
The second of our series of deep dive workshops, covering commercials.
| Download the slides | Watch the recording |
Deep dive workshop 1 - 25 April 2023
The first of our series of deep dive workshops, covering the role of the DFS.
| Download the slides | Watch the recording |
Webinar - 16 March 2023
We ran a webinar on 16 March to provide an update on what's next for the Demand Flexibility Service, covering feedback received to date and potential future options for the DFS.
| Download the slides | Watch the recording | Download the Q&A |
Aug 2023: DFS overview webinar – winter 23/24
Here you can find a recording and the slides from our DFS overview webinar for winter 23/24 held on 7 August.
| Download the slides | Watch the webinar |
World-first Demand Flexibility Service exceeds expectations
Our innovative Demand Flexibility Service has been a great success for participants, delivering a reduction of almost 800 megawatt hours (MWh) throughout events to date, with some companies earning up to £8,000 so far.
| Read the news article |
Nov 2022: DFS launch webinar
The launch of the new Demand Flexibility Service following Ofgem approval on the 4 November 2022.
| Download the slides | Watch the webinar |
Oct 2022: Communications workshop
Slides from the Communications Workshop held on 20 October.
| Download the slides |
Sep 2022: Post-consultation launch webinar
A deeper dive into the proposed service design for a new Demand Flexibility service.
| Download the slides | Watch the webinar |
Mid-point consultation: questions and answers
A summary of the questions and answers following our post consultation launch webinar.
| Download the slides |
Aug 2022: Pre-consultation webinar
An overview of the proposed service design for a new Demand Flexibility service.
| Download the slides | Watch the webinar |
We've launched our DFS Data Portal where you can subscribe to receive the latest updates and find information relating to both live and test events and datasets relating to the service.
Registered providers list
We’ve compiled a list of all the Registered Providers taking part in the Demand Flexibility Service.
Demand Flexibility Service explained
Find out why we have introduced the service, how you can take part and more in this DFS explainer.
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