SYSTEM OPERATION
Demand-Side Response (DSR)
Demand-Side Response (DSR) is a tool we use to engage daily metered gas customers in helping us balance supply and demand on the gas network. DSR contracts incentivise industrial and commercial gas customers to reduce their gas consumption at our request when the system is under stress – to help rebalance the network. It is one of series of measures we would take to prevent or help to manage a national supply shortage.
What is Demand-Side Response (DSR)?
DSR is a pre-emergency commercial tool that incentivises daily metered (DM) gas customers to reduce their consumption voluntarily during times of system stress, in return for compensation payments.
Contracted participants may be asked to reduce their consumption at times of national supply shortage, to help rebalance the network and maintain system operating pressures within acceptable levels.
What DSR products are available?
We offer three different DSR products, allowing participants to deliver demand reductions with varying lead times:
- Within Day (D) – a reduction delivered on the same day, which is scaled depending on the number of hours left in the gas day.
- Day Ahead (D-1) – a reduction delivered for the whole gas day (05:00 – 05:00) exercised before 17:00 the day before (D-1).
- 5 Day Lead Time (D-5) – a reduction delivered for the whole gas day (05:00 – 05:00) exercised before 17:00 five days before the event (D-5).
Both gas consumers and shippers can contract with us for DSR.
When are DSR contracts offered?
DSR contracts are offered ahead of each winter period (1 November - 30 April ) via an annual tender event which is held every summer. Shippers and eligible consumers are invited to tender to offer DSR for the forthcoming winter. They can also tender for multi-year DSR contracts for the next three winters.
What are the benefits for DSR participants?
By reducing demand when requested – to help avoid a gas supply emergency – DSR participants can protect their most critical loads. They also receive financial compensation for doing so at a greater level than they would otherwise receive if they were instructed to cease taking gas involuntarily in an emergency. The actions of DSR participants at times of stress on the gas network can play an important role in minimising the risk of such an emergency and, if one does occur, reducing its impact and duration.
Documents
Gas DSR Methodology related documents can be seen below.