The UK energy regulator signed off on two tranches of rule changes coming into effect in July 2026 and January 2027. Revised rules include tying Dynamic Response availability to notification data in balancing market. A tiered penalty regime for assets that do not meet availability target was rejected but could be revived.
From ESS News
Battery asset owners trading in Great Britain’s frequency response markets faced a mixed outcome after Ofgem ruled in favor of some rewrites to the terms and conditions governing its Dynamic Response suite of frequency services, while rejecting others.
Grid operator NESO originally put ten amendments out for industry consultation between November 20 and December 19, 2025, later withdrawing two before a final submission to Ofgem. The regulator has approved six of the remaining eight proposed amendments, split across two effective dates.
The first approved changes are effective from July 31, 2026, and include a new link between how providers signal their availability in Great Britain’s balancing market and their ability to operate in frequency service markets. Under the new rule, any balancing mechanism unit (BMU) that fails to submit a valid Final Physical Notification (FPN) – the locked-in declaration of a unit’s planned output or consumption for a given settlement period – will be deemed unavailable for Dynamic Response, regardless of the unit’s actual technical capability.
