Ofgem Approves NESO Demand Flexibility Service Balancing Terms
Summary
Ofgem has approved amendments proposed by the National Energy System Operator (NESO) to the terms and conditions for its Demand Flexibility Service. These changes update the service documentation for balancing requirements under EU electricity balancing regulations.
What changed
Ofgem has approved NESO's proposal to amend the terms and conditions related to balancing for its Demand Flexibility Service (DFS). The amendments update the Service Terms and Procurement Rules documentation. This action stems from a proposal received on January 30, 2026, and aligns with Article 18 of Commission Regulation (EU) 2017/2195 concerning electricity balancing, as amended by UK regulations.
This decision means that the updated terms and conditions for the Demand Flexibility Service are now in effect. Energy companies involved in balancing supply and demand, particularly those participating in or affected by the DFS, should review the updated documentation to ensure compliance with the revised balancing requirements. The publication date of March 25, 2026, indicates the approval date, and entities should refer to the full decision document for specific details on the changes.
What to do next
- Review updated Demand Flexibility Service Terms and Conditions
- Ensure compliance with revised balancing requirements
Source document (simplified)
Amendments to the Terms and Conditions related to Balancing for NESO's Demand Flexibility Service 2026
Publication type: Decision Publication date:
25 March 2026
Topic: National Energy System Operator (NESO) Subtopic: Balancing supply and demand Print this page
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- The Authority has decided to approve NESO's proposal to amend the relevant sections of the documentation for the Demand Flexibility Service (Service Terms and Procurement Rules) within the Terms and Conditions.
On 30 January 2026, we received a proposal from the National Energy System Operator (NESO) to amend the terms and conditions (T&C) related to balancing required by Article 18 of Commission Regulation (EU) 2017/2195 establishing a guideline on electricity balancing, as amended by the Electricity Network Codes and Guidelines (Markets and Trading) (Amendment) (EU Exit) Regulations 2019 (EBGL). The proposal relates to an update to the T&C to incorporate service documentation for NESO’s Demand Flexibility Service (DFS).
Documents
Demand Flexibility Service A18 Decision 2026 [PDF, 164.97KB] Print this page
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