Philip Davies – 2016 Parliamentary Question to the Department for Energy and Climate Change

The below Parliamentary question was asked by Philip Davies on 2016-02-19.

To ask the Secretary of State for Energy and Climate Change, whether she has made an assessment of the potential effect on UK GDP of the National Grid using its demand side balancing reserve powers; and if she will make a statement.

Andrea Leadsom

Demand Side Balancing Response (DSBR) is part of National Grid’s Contingency Balancing Reserve. Under the DSBR, firms bid for contracts to reduce their demand from the grid when instructed by National Grid in return for an agreed utilisation fee.

DECC has not made an assessment of the impact of DSBR on GDP; DSBR is small (133 MW in 15/16), runs infrequently and is entirely voluntary.

Since the service commenced in winter 14/15, National Grid has only instructed on one occasion, instructing a total of 42.9MW, for which participants were paid a pre-contracted utilisation fee.