A transparent, neutral market for flexibility services will allow GB to fully utilise flexibility whilst realising the physical, locational, and economic constraints of the networks on which these services will be transacted. It will support the move towards half-hourly tariffs, by providing attractive opportunities for customers of all scales to respond to requests for flexibility, and thereby avoid new or replacement power plants to serve peak demand. It will also allow existing and new renewables to be fully utilised.
We believe the role of the NMF should be transparent and non-discriminatory as it has a key role in establishing markets and the ability to improve coordination across the markets. The number of potential NMFs varies from one NMF (Central Market model with a GB focus), through a number of separate, geographical NMFs (where the boundaries are defined by network topology, such as one per DNO group or licenced DNO area, Local Market model), to many NMFs developed on a commercial basis and operating across geographic network boundaries (these could support local markets or a distributed market with a differentiated focus, Commercial Market model).