On 1 March 2019, Energy Networks Australia (ENA) submitted a rule change request to the AEMC for the introduction of a demand management incentive scheme (DMIS) and demand management innovation allowance (DMIA) to apply to transmission network service providers (TNSPs).
Consultation paper
On 23 May 2019 the AEMC published a consultation paper seeking stakeholder feedback on the rule change request. The AER provided its submission to this consultation paper on 11 July 2019.
AER submission to AEMC consultation paper - DMIS and DMIA for TNSPs - 11 July 2019
Draft determination
On 12 September 2019, the AEMC published a draft determination and a more preferable draft rule to apply the DMIA (the innovation allowance) to transmission networks. The AEMC considered:
- introducing a DMIA is expected to encourage transmission network businesses to expand and share their knowledge and understanding of innovative demand management projects that may reduce long term network costs and, consequently, may lower prices for consumers
- it is not clear that the benefits of applying the DMIS (the incentive scheme) to transmission would outweigh the upfront costs to consumers.
The AER sent a letter to the AEMC on the draft determination on 15 November 2019, which the AEMC subsequently published on its website as a submission.
AER letter to AEMC on DMIA for transmission - 15 November 2019
More information
More information on the DMIS and DMIA for TNSPs rule change request.