Demand Side Response (DSR)

DSR is a pre-emergency commercial tool that has been developed to incentivise large, Daily Metered (DM) gas consumers to voluntarily reduce their consumption during times of system stress, in return for a payment they define. On this page you will find out more about DSR and how you can get involved.

We hold an annual Tender event which is launched no later than 31st August where we invite Shippers and eligible Consumers to tender to offer DSR for the forthcoming Winter Period (Nov-Apr), they can also tender in for multi year DSR for a total of three Winter Periods.

By providing DSR prior to entering a gas supply emergency, DM consumers have the potential to protect their most critical loads by turning down and receive compensation for doing so. This has the potential to minimise the cost of demand interruptions and may reduce the likelihood of entering into an emergency situation where Firm Load Shedding could be enforced.

We have developed a DSR Guidance Brochure to help consolidate information on gas DSR in one place and provide a useful guide for anyone new to the scheme.

Operational Guidance Material – Demand Side Response


Methodology

We have developed, with industry input, a Gas Demand Side Response Methodology setting out the framework for the DSR service. In July 2015 we held a two-phase trial and, based on the trial's success, Ofgem directed us to move to implementation. At least every two years the Gas DSR Methodology is consulted on, and then a report is published detailing the outputs of this consultation.

Download our most recent report


Product Description and Eligibility

Only a registered user at the supply points that comply with the eligibility rules specified in this DSR framework and methodology may enter offers into the DSR mechanism. In turn, the DSR framework and methodology must satisfy the criteria and obligations set out in the Gas Transmission Licence Special Condition 9.22.

There are currently three different DSR products which are designed to allow DSR participants to deliver a reduction with varying lead times. The products have been outlined below:

Within Day (D) – a reduction which is delivered within day and has a “tick down” feature so that I can be appropriately scaled depending on the number of hours left in the gas day.

Day Ahead (D-1) – a reduction which is delivered for the whole gas day (05:00 – 05:00) if exercised before 17:00 on D-1

5 Day Lead Time (D-5) – a reduction which is delivered for the whole gas day (05:00 – 05:00) if exercised before 17:00 on D-5

Both Consumers and Shippers can contract with NGT for DSR and participate with all three products. For DSR where the Shipper is the contracting party, the consumer who is delivering the demand reduction must daily read.

Annual report

Each April, we publish a report on the number of Gas DSR offers and trades that have been placed on the On-the-day Commodity Market (OCM) over the previous winter. 

Download our last Gas DSR Annual Report

DSR Options: Invitation to Offer

Please see below for the Annual Invitation to Offer packs.

DSR Contract and Credit Security documentation (Direct consumer contracting only

Please see below for the DSR credit provision documentation (consumer only). 

Direct Consumer Contracting

In April 2023 National Gas Transmission raised UNC Modification 0844 “Enabling Direct Contractual Arrangements with Consumers for Demand Side Response” which would permit National Gas Transmission to enter into contracts with Class 1 Consumers to reduce their consumption in the event of the DSR Market triggers being met. In August 2023 Ofgem approved the UNC Modification and associated Methodology. The Consumer Contract can be found below.