Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, whether he is taking steps to ensure (a) market transparency and (b) protection of consumer interest by requiring National Grid ESO to publish the assumed load factors used to rank bids in the new Optional Downward Flexibility Mechanism made necessary by the low demand resulting from the public health measures adopted to tackle covid-19.

The Government believes that transparency is essential for a stable, secure energy market in which industry and consumers can participate with confidence.

The Optional Downward Flexibility Mechanism (ODFM) service has been established by National Grid Electricity System Operator (ESO) to be used in exceptional circumstances and under certain conditions. ODFM was critical during recent periods of exceptionally low demand as it created ‘space’ on the system, thereby allowing the ESO to balance the system without having to resort to implementing emergency disconnection of embedded generation. As lockdown restrictions relax and demand increases, there is likely to be less of a requirement to use this service.

Ofgem, as the independent energy regulator, has a statutory duty to protect the interests of GB’s energy consumers and is responsible for ensuring that the ESO procures services to balance electricity demand and supply (including ODFM) in an open, transparent, economic and efficient manner.

The ESO is committed to transparency and provides a comprehensive suite of data relating to its activities via their data portal [https://data.nationalgrideso.com/ancillary-services/optional-downward-flexibility-management-odfm-market-information?from=0#resources]; this includes extensive information about the ODFM service. The ESO is continuing to publish further information about activities undertaken as a result of the pandemic. We have asked them to publish further information in relation to load factors for ODFM as part of this.