We invite people with an interest in demand management to assist us in developing a new demand management incentive scheme and innovation allowance mechanism.
The new scheme and allowance mechanism complements our ongoing work targeting efficient outcomes and more consumer choice, recognising the changes taking place in the electricity industry. This includes work on tariff reform, metering contestability, developing national ring fencing guidelines, and a rule change to strengthen the transparency and efficiency of replacement expenditure.
The incentive scheme’s objective is to provide electricity distribution businesses with an incentive to undertake efficient expenditure on non-network options relating to demand management. The separate innovation allowance mechanism’s objective is to provide distribution businesses with funding for research and development in demand management projects that have the potential to reduce long term network costs.
Register your interest
It is important to hear stakeholders, understand and evaluate the issues that underpin change to better target a solution. We encourage stakeholders to engage with us, be heard and participate in developing the solution.
As a first step, we invite stakeholders to register their interest in engaging with us on this topic.
We encourage stakeholders to register by 19 August 2016 their interest in attending our upcoming workshop or future engagement events via DM
aer [dot] gov [dot] au (DM[at]aer[dot]gov[dot]au).
We anticipate having our first stakeholder workshop in September. This engagement will inform our Issues Paper for public consultation.
The Australian Energy Market Commission’s Rule Determination No.8 of 2015 discusses the reasoning for the objectives and factors the AER must consider in developing its new incentive scheme and allowance mechanism. The demand management incentive scheme and innovation allowance objectives and factors are set out in the National Electricity Rules clause 6.6.3 and 6.6.3A.