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).
- The role of the NMF and provide an evidential base that can be used to inform the decision as to who could fulfil this role.
- The extent to which the NMF should be independent of MPs and any consequences if the NMF can also transact for services.
- If all MPs should have unrestricted access to all NMFs under every market model and whether this affects the level of flexibility available or the delivery of services.
- How the role and scope of the DSO varies under each market model. TRANSITION will provide valuable insight to inform the development of both the NMF and DSO.
- The level and type of interaction between the DSO and the SO and whether the DSO is the route to market for all other MPs and, if so, whether such a step should be temporary or permanent.
