This document outlines our conclusions from the April consultation ‘Creating the right environment for demand-side response’. The document summarises stakeholders’ views on the key challenges that prevent the efficient system-wide use of Demand-Side Response (DSR). We then provide our conclusions on each issue and highlight relevant work underway in Ofgem and elsewhere.
Our overall conclusion from the consultation exercise is two-fold:
• a new market model specifically for DSR may be needed in the future but that it is not required at this stage
• more urgent is the need for a DSR framework that clearly formalises the interactions between different parties within the existing market model.
We propose to start a project to create this framework to improve DSR rules and practices across the value chain. This project will start in early 2014 and will build on important work undertaken by Work Stream 6 (WS6) of the Smart Grid Forum (SGF).