AER releases final Demand Management Innovation Allowance Mechanism for electricity transmission networks

The Australian Energy Regulator (AER) has today released the final transmission Demand Management Innovation Allowance Mechanism (DMIAM).

The AER is required through the National Electricity Rules to develop and publish a DMIAM for Transmission Network Service Providers (TNSPs) in the first half of 2021.

This mechanism provides an allowance in the form of a fixed amount of additional revenue to TNSPs to undertake innovative projects related to demand management. It focuses on encouraging electricity transmission networks to share project learnings across the industry and with consumers.

When a TNSP receives funding under this mechanism, it must submit annual reports on its activities, expenditures, projects and programs undertaken in a regulatory year to the AER for publication. The AER will consider the mechanism's outcomes through an annual review process.

In developing this mechanism, the AER consulted through an issues paper, and then developed a draft DMIAM and conducted further consultation.

Issued date: 
27 May 2021
AER reference: 
AC 74/21
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