Recommendation 49

The Government should build on initiatives from the National Grid Energy System Operator like the Demand Flexibility Service, expanding them and making them permanent. This should involve a robust programme of consumer research to ensure people who provide flexibility are incentivised, rewarded, and protected appropriately, but also to understand any potential flaws in how the system works in practice in a range of circumstances. The Government should support the roll-out of market-wide half-hourly settlement, which will help energy companies offer electricity tariffs that encourage people to operate appliances flexibly. It should explore the potential for more serious demand-side interventions where supply is extremely limited.