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OFGEM

ODFM in relation to the T&C related to Balancing

On 23 June 2020, we received a proposal from the Electricity System Operator (ESO) to approve amendments to the national terms and conditions related to balancing (T&C) required by Article 18 of the EBGL Regulation. This proposal relates to the inclusion of Optional Downward Flexibility Management (ODFM) into the T&C.

ODFM is primarily an opt-in service for balancing service providers (BSPs) to receive payments from the ESO to turn off their generation when required for balancing. The service is also open to those BSPs that can increase their demand when required.

This letter sets out our decision to confirm that ODFM as mapped by the ESO fully forms part of the T&C pursuant to Article 18 of the EBGL Regulation and approves the amendments to the T&C proposed by the ESO.