Energy Networks Association (ENA), the industry body for the energy networks, seeks to make providing companies providing flexibility services to the energy sector easier by ‘refreshing and streamlining’ a common contract used across the sector.
One example of providing flexibility services could be businesses striking demand-side response agreements to adjust their electricity use at the times of day when they least need it, helping reduce the need and cost of building new infrastructure.
The standard contract has been created through ENA’s leading Open Networks project, with input from distribution network operators and National Grid Electricity System Operator, to provide a consistent GB-wide core agreement for those wishing to provide vital flexibility services to the networks.
The ‘ON21-WS1A-P4 Updated Common Contract’ seeks to help take the transition to the smart grid to the next level and bring consistency across the industry.
It has been developed with feedback from a range of industry stakeholders, including Ofgem and the Department for Business, Energy and Industrial Strategy.
Key updates include:
- Simplifying the core contract, providing increased alignment with ESO approach.
- Making clauses more accessible across the agreement.
- Making the process more accessible to aggregators.
The energy networks report to have made significant progress on flexibility services since the launch of a dedicated workstream as part of ENA’s Open Networks project at the beginning of 2019.
With over 2GW of flexibility tendered by distribution network operators last year, the workstream has reportedly played a key role in helping all distribution network operators prioritise and deliver their flexibility commitments.
A public consultation on the next version of the common contract will follow in August, with plans to launch at the end of the year.
The contractual evolution report associated with the new contract will be launched later this month.
Farina Farrier, Head of Open Networks Project at Energy Networks Association, commented on the announcement: “The UK is already a world leader when it comes to energy flexibility and as part of the UK’s commitment to Net Zero, the whole of the energy industry is behind making it easier and more accessible to work with network operators.
“We’ve got lots of work ahead of us but by really focusing on providing a consistent, accessible way of working together, we can maintain that world-leading position and power towards Net Zero emissions.”
The updated contract can be downloaded from the ENA website.
