Pending approval from energy regulator Ofgem, the service is scheduled to be active for the 2023/2024 winter season.
Participants have the opportunity to earn rewards for their involvement, with energy suppliers also benefiting from a Guaranteed Acceptance Price (GAP) incentive.
Providers will have the opportunity to benefit from a GAP of £3,000MWh/£3KWh.
This offer will be applicable to a minimum of six out of the 12 tests,
The Electric System Operator (ESO) intends to conduct test events alongside live usage to encourage participation.
Jake Rigg, Corporate Affairs Director, ESO, said: “Across last winter the Demand Flexibility Service successfully demonstrated the interest of consumers and businesses in playing a more active role in balancing our electricity needs and to be rewarded with savings for their action in the process.”