The AER published details of the new DMIS in December 2017. The new scheme encourages electricity distribution businesses to find lower cost alternatives to network capital expenditure.
The Australian Energy Market Commission approved amendments to the National Electricity Rules (NER) in April 2018 to allow early application of the new DMIS. In March 2019 the AER approved the applications of Ausgrid and Endeavour Energy to implement the new DMIS from early 2019. The approved start dates were 31 March 2019 for Ausgrid and 1 April 2019 for Endeavour Energy.
In their annual compliance reports for 2018–19, Ausgrid and Endeavour Energy reported on their eligible demand management projects under the scheme. However, as there were no committed demand management projects for the year, the distributors did not claim any financial incentive payments.