Great Britain’s electricity market is moving decisively towards a more responsive and decentralised structure, with regulatory and operational changes now translating into clearer commercial signals.
Recent rule changes and updated targets from the system operator reinforce the intention to unlock substantially more demand side flexibility by 2030. Industrial and commercial users are expected to play a larger role in balancing supply and demand, particularly as renewable generation continues to increase.
Winter trading provided a practical demonstration of this dynamic. Periods of low wind output coincided with tighter system margins and elevated wholesale prices. While average prices over the season remained contained, short intervals of price volatility were significant. These episodes strengthened the economic case for assets capable of adjusting consumption or exporting power during peak stress periods. Flexible demand and generation were able to capture higher value when the system required support, highlighting the revenue potential embedded in volatility.
At the same time, milder weather reduced overall system strain compared with the previous year, leading to fewer activations of certain flexibility schemes. Lower volumes in demand response services reflected this softer backdrop rather than structural decline.
Drax Group plc (LON:DRX), trading as Drax, is a power generation business. The principal downstream enterprises are based in the UK and include Drax Power Limited, which runs the biomass fuelled Drax power station, near Selby in North Yorkshire.
