Essential Energy - Proposed demand management and embedded generation connection incentive scheme

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Segment: 
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Date initiated: 
29 May 2012
Effective date: 
17 May 2013
Contact: 
General Inquiries(02) 9230 9133NSWACTelectricity@aer.gov.au
Overview:

The AER will be undertaking the regulatory determination for the New South Wales (NSW) electricity distribution network service providers (DNSPs)—AusGrid, Endeavour Energy and Essential Energy, for the period 1 July 2014 to 30 June 2019.

In May 2012, the AER proposed amendments to its Demand Management and Embedded Generation Connection Incentive Scheme (DMEGCIS) to apply to NSW DNSPs for this period. Submissions on the AER's proposed DMEGCIS were received in August 2012.

On 17 September 2012, the AER decided to delay the final decision on its proposed DMEGCIS under cl. 6.16(g)(2) of the National Electricity Rules (NER). The delay was considered necessary in order for the AEMC to finalise its Power of Choice review.

On 17 May 2013, the AER concluded the proposed 2012 DMEGCIS process in accordance with r. 6.16(e) of the NER by not amending or replacing the current 2008 scheme to be applied to the NSW DNSPs.

Milestones

Proposal

29 May 2012

Proposed scheme (2) - DMEGCIS Explanatory statement

Accompanying the proposed DMEGCIS is an explanatory statement which sets out the reasons for the proposed amendments to and the application of the scheme with consideration of the National Electricity Rules.

Submissions (3) - to proposed DMEGCIS

Submissions closed 1 August 2012.

Proposed scheme - Extension of time to publish the final decision on the AER's proposed DMEGCIS

The AER may extend the time to amend a scheme such as DMEGCIS under r. 6.16(g) of the National Electricity Rules (NER). 

On 17 September 2012, the AER decided to delay its final decision on its proposed DMEGCIS. The delay was considered necessary in order for the AEMC to finalise its Power of Choice review. The Power of Choice review addressed issues that are directly relevant to the AER’s DMEGCIS. In deciding to extend time to publish a final decision on its proposed DMEGCIS, the AER also considered submissions received on the proposed DMEGCIS. These submissions suggested the AER incorporate changes resulting from the Power of Choice review to strengthen the incentives created through a DMEGCIS.

Information paper (1) - Demand management and embedded generation connection incentive scheme (DMEGCIS)

On 26 March 2013, the AER released an information paper on the DMEGCIS as part of the Better Regulation reform program. This information paper discusses our proposed approach to applying a demand management incentive scheme to NSW DNSPs as part of the next distribution determination process.

Stakeholder forum

The AER held a stakeholder forum on 12 April 2013 to discuss the AER's proposed approach as set out in the information paper. Further details of the forum will be notified in due course to those that have registered an interest in the Power of Choice implementation work stream.

Final decision

17 May 2013

Final decision (1) - Proposed 2012 DMEGCIS

The AER has decided to conclude the proposed 2012 DMEGCIS process in accordance with r. 6.16(e) of the NER. The AER has finalised the 2012 DMEGCIS process by not amending or replacing the current 2008 scheme to be applied to the NSW DNSPs. We have made this decision by having regard to cl. 6.6.3(b) of the NER and taking into account submissions made on the proposed 2012 DMEGCIS.