National Grid has backed proposals by the Association for Decentralised Energy (ADE) to develop a code of conduct for demand-side response aggregators.
The code will set common standards and establish industry best practice. The ADE also intends it to help businesses better understand the DSR schemes that best fit their operations.
“Business energy users play a growing role in the UK’s energy system and one that is crucial in balancing supply and demand. Thousands more businesses could reduce their energy costs through demand side response,” said ADE director Dr Tim Rotheray.
“Most businesses are not energy experts, and aggregators can help these businesses understand demand side response opportunities. However, trust and confidence in the aggregator is essential. The proposed Code will ensure high standards, provide businesses peace of mind and represents an important next step for this growing sector,” he added.
Rotheray called for DSR to be put on an equal footing with generation and said the ADE would continue to work with Decc and Ofgem to ensure market frameworks and policies enabled growth.
In response, Ofgem associate partner Andy Burgess said “Building confidence in the service aggregators offer is an important part of our work to make the electricity system more flexible. We welcome ADE’s initiative, and will take a close interest in how this code develops.”
The move was welcomed by National Grid. Head of commercial operation Cathy McClay said the option to use an aggregator was “a key enabler for many businesses to build a business case and earn revenue” from DSR.
She said a building customer confidence in DSR was a key priority for Grid’s Power Responsive campaign.
“We see this Code of Conduct being developed by ADE as a really important part of providing businesses with support in decision making when it comes to aggregators,” she added. “National Grid supports the Demand Side Response Code of Conduct and will be involved in the process to develop this.”
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