Seismic shift in the UK energy market

3 July 2018



The growing influence of energy consumers in shaping the UK energy market and safeguarding its continued security is leading to a “seismic shift across the industry”, according to the founder of demand side response (DSR) aggregator, Flexitricity.


The growing influence of energy consumers in shaping the UK energy market and safeguarding its continued security is leading to a “seismic shift across the industry”, according to the founder of demand side response (DSR) aggregator, Flexitricity.

Dr Alastair Martin, CSO of the Edinburgh- based firm, believes that the mounting popularity of electric vehicles, a growing interest in the potential of domestic DSR and the now mainstream participation of UK businesses in arenas such as the capacity market are symptomatic of a trend that is “blurring the lines between the consumer and industry.” Dr Martin shared his views ahead of the formal launch of Flexitricity’s energy trading service, Flexitricity+, which will bring industrial and commercial energy users even closer to the market by opening the door to energy trading via the National Grid’s Balancing Mechanism for the first time.

The Balancing Mechanism is the real-time flexible electricity market National Grid uses to balance supply and demand. BM prices can reach £2500/MWh, compared to around £50/MWh in wholesale markets. The market is used around 3000 times per day at a cost of £350 million per year – a cost which is passed on to the bill payers. By taking the flexibility of industrial, commercial and public-sector energy users right into the BM, Flexitricity says it can give its customers a slice of this premium market, while cutting the cost for National Grid and all energy users.

Initially, the new Flexitricity+ service will be targeted at businesses and public sector organisations and be particularly suited towards those that operate community energy schemes, combined heat and power generators and cold stores, as well as developers of gas peaking and battery storage sites. 



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