Demand Side Response (DSR)

Demand Side Response is a service that was developed by gas industry representatives to encourage daily metered (DM) consumers to offer to reduce their gas demand during times of system stress. On this page you will find out more about DSR and how you can become involved.

By providing DSR prior to entering a gas supply emergency, DM consumers have the potential to protect their most critical loads by turning down elsewhere 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.

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

We have also recorded a webinar that provides an overview of what Gas DSR is and its purpose. It demonstrates how DSR works and can be used by explaining who is eligible to take part and how you can get involved.

The following document forms part of a suite of documents created to provide operationally focused guidance material; the aim of which is to support Shippers in increasing their understanding of non-routine commercial tools utilised by National Gas so that Shippers can be suitably prepared and ready to participant ahead of an event.

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


Eligibility for the final Implemented DSR product

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.

An eligible supply point is a daily metered consumer (DMC), as defined in the Uniform Network Code (UNC) Section A4.5. An eligible DMC will be:

  • a supply point with a registered demand >2million therms per annum (2M tpa); and

  • able to offer a minimum DSR offer energy quantity of 100,000 kWhs in any one DSR offer notice.

A shipper may only submit a DSR offer onto the On-the-Day Commodity Market (OCM) platform – locational market for an eligible DMC where:

  • it is a registered user at the Eligible DMC; and

  • it has entered into a DSR service contract, with the relevant end user, prior to the relevant Gas Balancing Notification (GBN) or Margins Notice (MN) being declared.

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

In October 2022, UNC Modification 0822 ‘Reform of Gas Demand Side Arrangements’ and associated changes to our DSR Methodology were approved by Ofgem.  These reforms mean that the OCM DSR locational market will now be opened post issue of a Margins Notice as well as a Gas Balancing Notification and create an obligation on us to run an annual invitation to offer process seeking commitments from shippers in advance, on behalf of large consumers, to offer DSR quantities for which they would be compensated at prices they define.

Documentation in relation to the invitation to offer process for DSR options appears below.