The AER has developed a proposed demand management incentive scheme (DMIS) to apply to Aurora Energy in this period. Accompanying the proposed DMIS is an explanatory statement which provides information on the application of the proposed DMIS.

On the 29 November 2010 the AER published the final framework and approach paper.  The paper sets out the likely approach to the classification of distribution services provided by Aurora Energy and states the form of control that will apply to those distribution services in the forthcoming regulatory control period. It also sets out the application of a service target performance incentive scheme, efficiency benefits sharing scheme and demand management incentive scheme.

The AER published its final demand management incentive scheme (DMIS) to provide incentives for Aurora Energy to implement efficient non-network alternatives and/or to manage the expected demand for standard control services in some other way. The accompanying final decision sets out how this DMIS will apply for the forthcoming regulatory control period, which commences on 1 July 2012. The final decision also discusses the AER’s consideration of issues raised in submissions received on the proposed DMIS. The AER’s framework and approach paper for Aurora Energy provides further information on the likely approach to the application of the Tasmanian DMIS.

Aurora Energy's negotiated distribution services are not determined by the AER, and are subject to a dispute resolution process. The AER is required to make a decision on the proposed Negotiated Distribution Service Criteria (NDSC) to apply to Aurora Energy. The NDSC are to be applied by Aurora Energy when negotiating terms and conditions of access for its negotiated distribution services. The AER will also use the NDSC when resolving any access disputes for these services.