NESO MFR Volume Increase to 300 MW Approved
Summary
Ofgem approved NESO's request to increase the derogated Mandatory Frequency Response (MFR) volume from 120 MW to 300 MW. This decision updates the 6 January 2025 derogation and exemption, which remains in effect until 31 December 2029. No other terms of the original derogation and exemption have been changed.
What changed
Ofgem has approved an amendment to increase the derogated MFR volume from 120 MW to 300 MW for NESO (National Energy System Operator). The original derogation and exemption, granted on 6 January 2025, permitted NESO to procure MFR at times earlier than day-ahead and for contract periods longer than one day (up to one month). This volume increase was requested by NESO on 27 February 2026.
No action is required by market participants as this decision only affects the volume ceiling under NESO's existing procurement arrangements. The derogation and exemption continue to apply under the same terms until 31 December 2029. Energy companies providing frequency response services may see increased procurement opportunities as NESO can now procure up to 300 MW under the derogated terms.
Source document (simplified)
Decision to update the 6 January 2025 derogation and exemption regarding Mandatory Frequency Response (MFR)
Publication type: Transparency document Publication date:
31 March 2026
Topic: Electricity distribution, Electricity transmission Print this page
Related links
Decision to grant NESO a derogation and exemption for mandatory frequency response (MFR)
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- Outcome of National Energy System Operator (NESO)’s request to amend its derogated MFR volume from 120 MW to 300 MW.
On 6 January 2025, we granted NESO a derogation and an exemption, under which NESO could procure MFR, a frequency response product, at a time earlier than day-ahead, and for a contract period longer than one day but not longer than one month. The derogation and exemption remain in effect until 31 December 2029. Under the 2025 decision, the derogated volume of MFR was up to 120 MW.
On 27 February 2026, NESO requested an increase to the derogated volume to 300 MW, with no changes sought to any other terms of the granted derogation and exemption.
This letter sets out our rationale for granting the requested increase to the derogated volume and the necessary next steps.
Documents
Decision to update the 6 January 2025 derogation and exemption regarding Mandatory Frequency Response [PDF, 154.12KB] Print this page
Related links
Decision to grant NESO a derogation and exemption for mandatory frequency response (MFR)
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