The Demand Flexibility Service pays you to shift electricity use away from peak hours
The Demand Flexibility Service (DFS) is a National Grid ESO programme that rewards households for reducing or shifting electricity consumption during pre-announced high-demand events. Participants receive payments for each kilowatt-hour (kWh) of electricity they avoid using during these events, compared to their normal usage pattern. The service is designed to help balance the grid during winter peak periods, typically 4pm to 7pm on weekdays, reducing the need for fossil-fuel peaking plants (National Grid ESO, 2026).
You can earn £50-£150 per winter by shifting electricity use away from peak hours via the Demand Flexibility Service. There's no upfront cost if you have a smart meter and compatible tariff, and you're paid per kWh saved during pre-announced events.
- Earn £50-£150 per winter by shifting electricity use off-peak.
- DFS events last 1-2 hours during peak demand, typically 5pm-6pm.
- Payment rates range from £1.50 to £4.00 per kWh saved in 2026.
- No upfront cost if you have a smart meter and compatible tariff.
- Baseline calculated from smart meter data over 10 similar days.
- The Demand Flexibility Service pays you to shift electricity use away from peak hours
- How the DFS works events, baselines, and payments explained
- The real-world cost what you can earn and what it costs you to participate
- Quick numbers typical earnings and savings at a glance
- Is the DFS worth it? The payback period and net benefit
- How to join the DFS eligibility, smart meter requirements, and installer verification
- The direct answer the Demand Flexibility Service is a smart meter-based programme that pays you for reducing peak-time electricity use
- The future of the DFS potential changes and long-term viability
How the DFS works events, baselines, and payments explained
DFS events are called by National Grid ESO, usually 24 hours in advance, and last for one to two hours during peak demand times such as 5pm to 6pm. Your baseline consumption is calculated from your smart meter data over the previous 10 similar days, for example weekdays, to determine your normal usage. Payment is calculated as: (baseline kWh minus actual kWh used during the event) multiplied by the payment rate per kWh (National Grid ESO, 2026).
Payment rates vary by supplier and event, but typical rates in 2026 range from £1.50 to £4.00 per kWh saved, according to supplier offers. For example, if your baseline is 1.5 kWh during the event and you use only 0.3 kWh, you save 1.2 kWh and earn between £1.80 and £4.80 for that single event.
The real-world cost what you can earn and what it costs you to participate
Average households can earn between £50 and £150 per winter by shifting usage during 10 to 15 events, based on typical savings of 0.5 to 1.5 kWh per event (Energy Saving Trust, 2026). There is no upfront cost to join the DFS if you already have a smart meter and a compatible tariff. Some suppliers charge a small setup fee of £5 to £10, though most waive it for existing customers.
The real cost is the inconvenience of shifting high-usage activities such as running the dishwasher, charging an electric vehicle, or using a tumble dryer to outside event hours. If you have electric heating, you may need to pre-heat your home before the event or rely on stored heat during it. Ofgem data shows that around 70% of UK households now have smart meters, making the service widely accessible (Ofgem, 2026).
Quick numbers typical earnings and savings at a glance
| Metric | Typical value | Notes |
|---|---|---|
| Events per winter | 12 | Based on 2025–26 season data (National Grid ESO, 2026) |
| Typical kWh saved per event | 0.8 | For a household without electric heating or EV (Energy Saving Trust, 2026) |
| Average payment rate per kWh | £2.50 | Varies by supplier; range £1.50–£4.00 |
| Typical total earnings | £24 per event × 12 = £288 | Before any tariff cost adjustments |
| Net earnings after tariff changes | £40–£120 | Subtract higher standing charges if on a DFS-specific tariff |
Is the DFS worth it? The payback period and net benefit
Payback is immediate: you earn money during each event, with no investment required, so the payback period is zero. The net benefit is your earnings minus any additional tariff costs, such as higher standing charges on a DFS-linked tariff. Typical net benefit ranges from £40 to £120 per winter, according to Ofgem’s evaluation (Ofgem, 2026).
The key factor is your ability to shift usage. Households with electric heating, electric vehicles, or large appliances such as tumble dryers can save more because they have more discretionary load to move. If you cannot easily shift your usage, your earnings will be lower, but you still lose nothing by joining as long as you avoid a tariff with higher fixed costs.
How to join the DFS eligibility, smart meter requirements, and installer verification
You must have a smart meter in smart mode, not in traditional mode, to participate. The service relies on half-hourly consumption data sent automatically to your supplier. Your electricity supplier must offer a DFS-linked tariff or opt-in programme. Most major suppliers, including British Gas, EDF, and Octopus, participate in 2026 (GOV.UK, 2026).
To verify an installer for a smart meter upgrade, check they are registered with the Smart Meter Installation Code of Practice (SMICOP) and certified by the Smart Energy GB scheme. You can find approved installers through the TrustMark website or your supplier’s recommended list. If you already have a smart meter, contact your supplier to confirm it is operating in smart mode and to opt into their DFS programme.
The direct answer the Demand Flexibility Service is a smart meter-based programme that pays you for reducing peak-time electricity use
The DFS is a voluntary, opt-in scheme that rewards households for avoiding electricity use during short, pre-announced peak events such as 5pm to 6pm on cold winter days. Payments are calculated based on your smart meter data, comparing your actual usage to your normal baseline during the event. The service is currently available to all households with smart meters on participating supplier tariffs, with no minimum savings requirement (National Grid ESO, 2026).
If you are considering joining, the main question is whether you can shift your electricity use by at least 0.5 kWh during event hours. Most households can do this by delaying the dishwasher, washing machine, or tumble dryer by an hour or two. For households with electric vehicles, charging can be scheduled to start after the event ends.
The future of the DFS potential changes and long-term viability
National Grid ESO is evaluating the DFS for permanent expansion beyond winter 2026, with potential integration into the Capacity Market. Ofgem’s 2026 review suggests the DFS could become a standard tariff feature, with payment rates stabilising around £1.50 to £3.00 per kWh saved (Ofgem, 2026). The service’s viability depends on smart meter adoption, now at 70% of UK households as of 2026, and ongoing grid balancing needs.
If you join now, you benefit from higher introductory payment rates that may moderate as the scheme matures. The long-term trend is toward more flexibility services, not fewer, so the DFS is likely to remain available in some form for the next several winters. how smart meters affect your energy bills comparing time-of-use tariffs
Frequently Asked Questions
Average households earn between £50 and £150 per winter, based on saving 0.5 to 1.5 kWh per event over 10-15 events (Energy Saving Trust, 2026).
National Grid ESO calls events 24 hours ahead, lasting 1-2 hours during peak times. Your baseline is calculated from smart meter data over 10 similar days, and you're paid for each kWh you save below that baseline (National Grid ESO, 2026).
No upfront cost if you have a smart meter and compatible tariff. Some suppliers charge a £5-£10 setup fee, but most waive it for existing customers (Ofgem, 2026).
Payment rates vary by supplier and event, typically £1.50 to £4.00 per kWh saved in 2026. For example, saving 1.2 kWh earns you between £1.80 and £4.80 per event (supplier offers, 2026).
Events are called by National Grid ESO during winter peak periods, usually 4pm-7pm on weekdays, with 24 hours' notice (National Grid ESO, 2026).
