Flexibility Focus: Regulatory change and policy momentum shaping consumer-led flexibility
Q3 highlighted both the volatility of renewable-driven markets and the pace of regulatory policy evolution shaping the future of UK flexibility. As the sector heads into a critical winter, attention will turn to how these reforms translate into real opportunities for flexibility providers and end users alike.
The Government made clear that the Capacity Market (CM) will be subject to reforms in 2026. It’s also opted to retain a single national wholesale market under its Review of Electricity Market Arrangements (REMA) programme.
Our Flexibility Focus report offers a quarterly insight into the key market, policy and regulatory developments affecting consumer-led flexibility (CLF).
In our latest report, reflecting on Q3 2025, and looking forward to Q4, we discuss:
- Market updates: Power prices swung from circa £100/MWh to near zero due to strong solar or wind output
- Policy updates: The Department for Energy Security and Net Zero (DESNZ) confirmed it will retain a single GB-wide wholesale market under a Reformed National Pricing (RNP) model and the Government released The Clean Flexibility Roadmap
- Regulation updates: Elexon will take on the role of Market Facilitator, while Ofgem opened a consultation on a blueprint for this new role
- Wholesale arbitrage: Q3 wholesale prices saw less day-to-day volatility than Q2, despite higher daily peak prices
- Demand Flexibility Service (DFS): The National Energy System Operator (NESO) obtained 2,505MWh in Q3, up from 1,833MWh in Q2.
As we approach winter, sector attention will be on how these policy and regulatory shifts materialise into new commercial opportunities – and how flexibility providers contribute to grid resilience.
Download the full report to stay ahead of policy and market change below.
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