Former National Grid Chief Executive Steve Holliday has highlighted the role that demand-side response (DSR) can play in providing cheaper energy to consumers.

Holliday said DSR was frowned upon in the UK but was an accepted and welcome tool in the United States.

He said: “We need to change the story on demand-side measures, stop seeing them as 1970s-type rationing and start seeing them as part of the future.

“Supply-side measures are always more expensive than demand-side measures, which are bound to be cheaper, although they currently still need to be incentivised.”

Supporting British innovation

Chris Kimmett, Commercial Director at DSR provider Open Energi, said: “If DSR is allowed to compete on equal terms it will be a move towards the freer energy markets that we all want to see, as well as supporting British innovation and rewarding entrepreneurship.”

Donna Hunt, Head of Sustainability at Aggregate Industries, added: “As a major energy user, DSR reduces our energy costs, keeps us competitive and has the added benefit of making the grid more flexible for the benefit of everyone in the UK.”

Their comments came as the Energy & Climate Intelligence Unit published a report that said increased use of DSR could have reduced the cost incurred by invoking National Grid contingency measures on a day of very high demand last winter by one-fifth.

> Download the report