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XRN 5652
Enabling Direct Contractual Arrangements with Consumers for Demand Side Response (Modification 0844)

Last Updated
10 Nov 2023
Release Type
Implementation Date
04 Aug 2023
Proposer National Gas Impacted DSC service area

Service Area 8 (Current Apr 21)

Energy Balancing (Credit Risk Management)

Customer Change Team Leader


At present, NGT is only able to contract for gas DSR with Shippers.  Modification 0844 seeks to introduce provisions into the UNC which will allow NGT to contract directly with Class 1 Consumers for the purposes of DSR. Based on consumer feedback, this proposal has the potential to increase the level of participation in the gas DSR market and therefore increase the volumes which NGT can procure, which will further enhance the suite of pre-emergency tools NGT can call upon in the event of a forecast supply shortage. 


It is envisaged that NGT would publish an annual tender for this DSR service that eligible consumers could respond to according to the same timescales as the tender process established for shipper DSR options by Modification 0822.  Consumers that have DSR offers accepted through this process would receive monthly ‘option’ payments based on volumes and prices offered in return for agreeing to reduce their gas demand if called upon by NGT to do so at times of national gas supply shortage.  Such events would also trigger ‘exercise’ payments, again based on prices submitted in the tender.  Both option and exercise payments will be funded from Balancing Neutrality.


If the Modification is implemented, there are a number of additional processes that NGT requests to be discharged by the CDSP (summarised in the CP document)

Impacted Customer Types

  • Shipper
  • DNO
  • NGT


Document title Comment Last updated CHMC outcome
Change Proposal CP Raised 14/06/23 Approved at ChMC on 09/06/23 
DSG Discussion N/A 01/08/23 N/A
Detailed Design N/A 14/08/23 For information at ChMC 27/07/23
Evaluation Quotation Reports (EQR) Stage not required    
Business Evaluation Reports (BER) Stage not required    
Change Completion Reports (CCR) N/A 10/11/23 Approved at ChMC 08/11/2023


Initial Review
Change Proposal Raised 25/05/23
Status For voting at ChMC 09/06/23
Approved into development 14/06/23
Status ChMC approved
Solution Consultation
Expected: 00/00/00
Status Stage not required
Awaiting Delivery
Detailed Design issued 17/07/23
Status For information at ChMC 09/08/23
In Delivery
Detailed Design issued for information at ChMC 09/08/23
Status Awaiting Ofgem decision
Implementation successful 04/08/23
Status Implemented immediately following Ofgem decision to approve Modification 0844 on 04/08/23

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