Elexon creates the rules, systems, and governance that unlock Great Britain’s flexibility markets – enabling households, businesses, and providers to power a smarter, cleaner, and more efficient energy system. More on flexibilty markets and Elexon’s role

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Understand flexibility in the energy system and Elexon’s role in helping flexibility markets.

What is flexibility?

Flexibility is the ability to adjust how much electricity we generate or use in response to signals from the grid — such as changes in demand, supply, or price.

This is vital to keeping the electricity system balanced, especially as the United Kingdom (UK) relies more on renewable energy sources like wind and solar.

By using flexibility, we can:

  • reduce the need for costly new infrastructure
  • make better use of distributed assets such as electric vehicles (EVs) and heat pumps
  • support the UK’s goals of clean power by 2030 and net zero by 2050

What are flexibility markets?

Flexibility markets are where flexibility services are bought and sold across Great Britain. These services help the grid operate efficiently and reliably.

Current markets include:

  • local markets run by Distribution Network Operators (DNOs)
  • National Balancing Mechanism (BM) services
  • ancillary services that support system stability

At the moment, these markets are fragmented and uncoordinated, which creates barriers for those wanting to take part.

Barriers for flexibility providers

Flexibility Service Providers (FSPs) include energy suppliers, small-scale low-carbon generators, storage operators, and businesses offering flexibility.

Key challenges they face include:

  • limited visibility of where flexibility is needed across Great Britain
  • complex processes for registering and participating in local flexibility markets
  • lack of transparency on which providers are contracted to deliver flexibility services

The market facilitator

To overcome these challenges, Ofgem (the Office of Gas and Electricity Markets) appointed Elexon in July 2024 as the market facilitator for flexibility markets.

Elexon’s role is to coordinate and standardise how flexibility markets operate, helping to create a consistent, efficient, and transparent system across the country.

How the market facilitator works

Elexon, as the market facilitator, coordinates and standardises flexibility markets across Great Britain. Its work ensures that rules, processes, and data support efficient and transparent operation of these markets. Elexon’s main responsibilities are:

1. Provide strategic leadership

Elexon gives expert advice to Ofgem and the Department for Energy Security and Net Zero (DESNZ) by:

  • identifying and addressing barriers to flexibility early
  • monitoring developments in policy, regulation, innovation, and energy markets
  • creating and managing a two-year Market Coordination Delivery Plan and an Annual Delivery Schedule to set clear priorities and maintain transparency

2. Coordinate flexibility markets

Elexon develops and manages the Flexibility Market Rules to ensure consistent operation across markets, including:

  • setting operational standards
  • defining data exchange protocols
  • establishing baseline methodologies

Elexon also works closely with industry stakeholders to maintain an up-to-date Flexibility Market Catalogue.

3. Monitor implementation and compliance

Elexon ensures that Distribution Network Operators (DNOs) and the National Energy System Operator (NESO) implement the agreed rules and processes on time.

  • if issues or non-compliance arise, Elexon reports them to Ofgem, which may take enforcement action

Elexon’s broader role in flexibility

Elexon plays a central role in modernising Great Britain’s energy flexibility capabilities. Its work focuses on several key areas.

Market half-hourly settlement (MHHS)

Elexon is leading the Market Half-Hourly Settlement (MHHS) programme to support a smarter electricity system. This reform will make detailed consumption data available to enable new flexibility products and tariffs.

Governance arrangements

Elexon is reforming governance under the Smart Secure Electricity System (SSES) programme to make rules more agile, improve investor confidence, and support accessible flexibility markets.

Data and digitalisation

Elexon is developing key data systems, including the Smart Data Repository (SDR) and Insights Solution, to support new energy products, improve forecasting, and ensure consistent, interoperable market data.

Market reforms

Elexon is implementing reforms across wholesale, balancing, and retail markets to simplify participation, reduce fragmentation, and enable fair competition for flexibility providers.

Learn more

To explore Elexon’s wider strategy and ambitions, visit the Elexon Flexibility Vision & Action Plan page.