The AER has commenced developing a new demand management incentives scheme and innovation allowance mechanism. This scheme and allowance mechanism complements our ongoing work from the Power of Choice workstream.

On 20 September 2016, the AER hosted a stakeholder workshop on developing a new demand management incentive scheme and innovation allowance mechanism.

Presentations from the Institute for Sustainable Futures, the Department of the Environment and Energy, the AEMC, AEMO, the ENA, AGL, Energy Consumers Australia and GreenSync are independent views of each organisation and do not necessarily reflect the views of the AER.

Notes from the breakout sessions represent a consolidation of various independent stakeholder views and do not necessarily reflect the views of the AER.

On 4 January 2017, the AER published a consultation paper to invite submissions to inform the development of a robust, best practice Demand Management Incentive Scheme and Innovation Allowance Mechanism.

The AER invited interested parties to respond to the consultation paper by providing us with written submissions. The consultation period closed on 24 February 2017.

The AER may, but need not, consider a submission it receives after the consultation period has ended.

We held a workshop to hear stakeholder ideas on demand management incentives and innovation allowance design options. The discussion questions set out in the slide pack below were informed by our previous stakeholder engagement, including submissions on our consultation paper.

Following the interactive discussion at our demand management 'Options Day', AER Board member, Jim Cox invited attendees to submit any additional views they wanted to emphasise. This resulted in a short, informal consultation period.

This material complements the formal submissions we received on our consultation paper, as well as the views we heard during our stakeholder engagement events. This input will help inform our draft demand management incentive shceme and innovation allowance mechanism.

The AER may, but need not, consider a submission it receives after the consultation period has ended.

We held a Directions Forum on 29 June 2017 to gather stakeholder feedback on the draft demand management incentive scheme and innovation allowance design prior to their publication. The Directions Forum took place over videoconference from AER offices in Adelaide, Brisbane, Canberra, Hobart, Melbourne and Sydney.