A British demand response firm has announced plans to become an energy supplier and take on the Big Six.
Flexitricity plans to give its industrial, commercial and public-sector customers access to National Grid’s flexible power market, known as ‘the Balancing Mechanism’, by seeking a supply licence.
The Balancing Mechanism is the real-time flexible electricity market National Grid uses to balance supply and demand.
Access to this market is currently the preserve of traditional energy suppliers like the Big Six.
Flexitricity says in comparison to the wholesale market’s unit cost of around £50/MWh, prices on the Balancing Mechanism can top £2,500/MWh in times of high demand.
It says this could be hugely lucrative for owners of generators, battery storage or flexible demand, as well as cutting the cost for National Grid and its energy users.
Flexitricity says it will initially focus on community energy schemes, combined heat and power (CHP) generators and battery developers.
Ron Ramage, Flexitricity’s CEO, said: “This is the first time anything like this has been done in the Balancing Market and we think it will be transformational – we are unlocking value for our customers as well as for bill-payers across the country by making our electricity system more efficient.”
Flexitricity say the new service will be formally launched in mid-2018.