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Unlocking flexibility: Why local authorities hold the key to smarter energy management

Published on
February 16, 2026

UK100's chief executive explains how a new partnership guide empowers councils to participate in flexibility markets, reduce energy costs, and take control of local energy systems.

UK100 blog header featuring Christopher Hammond, chief executive, discussing energy flexibility guide for local authorities, with electrical grid infrastructure background
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Last month, we launched Unlocking Flexibility: A Guide for Local Authorities in partnership with UK Power Networks DSO and the Association for Decentralised Energy. It's a practical resource designed to help councils navigate what has, until now, been frustratingly complex territory. But beyond the technical detail, this guide represents something more significant: the evolution of a partnership that's proving what genuine collaboration between local government and energy networks can achieve.

When UK100 and UK Power Networks DSO won Strategic Partner of the Year at the Utility Week Awards in December, it wasn't just recognition of the tools we've built together over the past two years. It was a validation of an approach that puts local authorities at the centre of the energy transition, rather than treating them as an afterthought.

Why flexibility matters now

Energy flexibility is the ability to adjust when we consume, generate or store electricity. It's becoming critical as our energy system transforms. The ability to change how and when consumers use electricity – could be worth as much as £125bn to the UK between now and 2050. UK Power Networks DSO delivered £114 million in customer benefits through flexibility services in 2024/25 alone. These aren't abstract theoretical figures. This is money that stays in local economies, keeping bills down and reducing the need for costly grid upgrades that ultimately fall on consumers.

The role of flexibility is also explicitly referenced in Great British Energy’s Local Power Plan, launched last week. I am proud that our unique energy partnership has been “on the cutting edge” to quote Minister White, again in supporting local government to with the delivery of community and municipal energy.

Yet during the focus groups we ran while developing this guide, one council told us they'd spent three and a half years trying to engage with flexibility markets without success. Another described it as "mind-numbingly difficult to get your head around." These are capable, ambitious local authorities with the assets and the appetite to participate. Exactly the types of organisations needed the most to deliver those flex benefits..

Listening to local voices

Sarah Kerr, energy systems lead at Oxfordshire County Council, captured the problem perfectly: "It's refreshing to feel that the voices of local authorities have genuinely been listened to." That principle has been at the heart of our partnership with UK Power Networks DSO from the start. Actually listening to what councils need, rather than telling them what they should do.

The guide cuts through the complexity. It explains which council assets can participate in flexibility markets, from EV chargers and heat pumps to batteries and public buildings. It outlines the different types of markets available, both at the distribution network operator level and nationally. Crucially, it addresses the practical questions councils have been asking. How do we build a business case? What revenue can we expect? How do we get started?

The opportunity ahead

The potential revenues may sound modest at first glance. Around £65 per 7kW EV charger, £35 per heat pump, £240 per 4.8kW battery annually. But aggregated across council estates and communities, these represent meaningful income streams for authorities facing unprecedented financial pressure. More importantly, they represent councils taking an active role in managing local energy systems, rather than being passive consumers. Now that’s taking back control.

This isn't just about council assets either. Local authorities are uniquely positioned to convene businesses, schools, community groups and residents to participate in flexibility at scale. They understand their communities, know which buildings need upgrading, and can engage people in behaviour change. The guide provides the toolkit to turn that local knowledge into action.

What makes this partnership work

Our collaboration with UK Power Networks DSO has succeeded because it's genuinely two-way. We bring the voice and experience of over 120 strategic and local authorities working cross-party to tackle climate change. UK Power Networks DSO brings deep expertise in the energy sector and a commitment to supporting local government customers. The Association for Decentralised Energy has contributed invaluable technical knowledge on flexibility markets and policy frameworks.

Together, we've created something councils have told us they desperately needed: accessible, practical guidance written in their language. This builds on our award-winning Local Area Energy Planning Toolkit, our EV charging infrastructure guide, and the programme of webinars and training sessions that have reached over 100 councils to date.

Getting started

For UK100 members, this guide signposts a route into flexibility markets. Whether you're just beginning to explore the opportunity or you're ready to put assets forward for tender, it provides the framework you need. Combined with support from UK Power Networks DSO's Local Net Zero team and technical expertise from ADE, councils have access to the resources that can turn complexity into opportunity.

The transition to a cleaner, smarter energy system will succeed or fail at local level. Flexibility gives local authorities a seat at the table in shaping how our energy networks evolve. This guide is the first step in making that participation practical, accessible and worthwhile.

Download the Unlocking Flexibility guide from our Knowledge Hub. If you have questions about how your authority can engage with flexibility markets, contact membership@uk100.org or flexibility@ukpowernetworks.co.uk.