Decision to update the 6 January 2025 derogation and exemption regarding Mandatory Frequency Response (MFR)
- Publication type:
- Transparency document
- Publication date:
- Topic:
- Electricity distribution,
- Electricity transmission
Outcome of National Energy System Operator (NESO)’s request to amend its derogated MFR volume from 120 MW to 300 MW.
On 6 January 2025, we granted NESO a derogation and an exemption, under which NESO could procure MFR, a frequency response product, at a time earlier than day-ahead, and for a contract period longer than one day but not longer than one month. The derogation and exemption remain in effect until 31 December 2029. Under the 2025 decision, the derogated volume of MFR was up to 120 MW.
On 27 February 2026, NESO requested an increase to the derogated volume to 300 MW, with no changes sought to any other terms of the granted derogation and exemption.
This letter sets out our rationale for granting the requested increase to the derogated volume and the necessary next steps.