For years, most businesses approached energy with a familiar mindset: buy well, use less, and keep a close eye on cost. Those principles still matter, but they no longer tell the whole story. Flexibility is now more than a ‘nice to have’; it is a core part of good energy management and a practical tool that businesses can use today.
This is being driven, in part, by the UK’s clean power transition, which will deliver long-term benefits but place fresh pressure on energy costs in the near term. In particular, businesses are likely to feel the impact of rising Non-Commodity Charges (NCC), which cover the policy, network, and system costs required to build and operate the changing electricity system. Our Business Energy Tracker found that 97 per cent of businesses are concerned about the cost impact of the energy transition. Our Energy Cost Calculator also projected an average non-commodity increase of 84.2 per cent by 2030. Against that backdrop, flexibility is one of the most practical levers available.
Understanding flexibility
Flexibility is not a new concept, but the market around it has evolved significantly in recent years. As the UK increases its reliance on renewables, managing the balance between electricity supply and demand becomes more complex as the network faces capacity constraints at certain times. Energy flexibility involves changing when and how businesses use or generate electricity to support the wider system. That could mean shifting demand away from peak periods, making better use of on-site assets, or responding to wholesale electricity price signals.
How businesses can unlock flexibility
One reason flexibility remains underused is that many organisations do not realise they already have the assets needed to participate. While technologies such as battery storage and on-site generation can enhance flexibility, many opportunities already exist within day-to-day operations. Machinery, heating and cooling systems, refrigeration, and production processes can all represent sources of flexible demand. Flexibility is less about what assets are added and more about how existing ones are used.
In practice, this often comes down to a combination of operational and behavioural changes. Shifting when certain processes run, adjusting equipment cycles or using on-site assets more effectively can reduce demand at key times without affecting performance. In many cases, relatively small changes can unlock valuable flexibility.
Different approaches will suit different organisations, and flexibility does not have to come from a single site or asset. In some cases, capacity can be combined through aggregation, allowing multiple sources of flexible demand to deliver a meaningful impact on the system.
Even those with continuous operations can find opportunities. Cold storage sites, for example, can pre-cool products and maintain safe temperatures while temporarily reducing electricity demand during peak periods. Similar approaches can be applied in manufacturing by shifting production schedules, or in commercial buildings by optimising HVAC systems.
Using flexibility to generate revenue
Flexibility can help businesses manage costs, and it can also create new commercial opportunities. The range of schemes available has grown considerably, including the Balancing Mechanism, where participants adjust consumption in real time to help balance supply and demand, and the Demand Flexibility Service, which rewards reductions in electricity use during peak periods. By participating in these schemes, organisations can generate additional revenue to offset the increasing cost burden associated with clean power.
For example, one temperature-controlled distribution business used our Demand Shift service to earn just under £3,000 over a single winter period, while also improving operational efficiency and supporting its sustainability goals.
The time to act is now
Businesses should start their flexibility journey by understanding how they use energy. Improving data visibility and identifying key energy-consuming assets can reveal opportunities to shift demand or optimise processes. From there, organisations can work with their energy partner to identify the most appropriate flexibility schemes.
Flexibility should form part of a broader energy strategy. By shifting electricity use to periods when renewable generation is high, businesses can also reduce their Scope 2 emissions. This helps align consumption with cleaner power on the grid and supports progress towards Net Zero targets.
Businesses getting the most value from flexibility are those with a clear picture of their energy use. By mapping flexible capacity now, they will be in the strongest position to act as the market develops — and that market is moving quickly.