The Demand Management Incentive Scheme (DMIS) aims to provide incentives for Distribution Network Service Providers (DNSPs) to conduct research and investigation into innovative techniques for managing demand. It also aims to enhance industry knowledge of practical demand management projects and programs through the publication of annual reports. At the end of each regulatory year DNSPs are required to submit a report to the AER on their Demand Management Innovation Allowance (DMIA) expenditure. The AER conducts an assessment of the expenditure incurred by the DNSP to ensure compliance with the DMIA criteria and entitlement to recover expenditure.
The AER has reviewed 2012 DMIA expenditures claimed by the Victorian DNSPs:
The DNSPs sought approval of total expenditures of $564 515 relating to six demand management projects. The AER has approved the expenditure claimed by the DNSPs as the expenditure is consistent with the DMIA criteria.
To date, the Victorian DNSPs have only utilised a small proportion (around 11 per cent) of their total DMIA allowance. It is noted, however, that the DMIS provides DNSPs with considerable flexibility as to the profile of the expenditure over the regulatory period as long as the expenditure meets the criteria and does not exceed the approved allowance.
The 2011-12 DMIA report has been updated to include the assessment of the DMIA expenditures claimed by the Victorian DNSPs for 2012.