AER seeks sector-wide views to inform progressive demand management options

The Australian Energy Regulator (AER) is developing a new demand management incentive scheme and innovation allowance mechanism. This scheme and allowance mechanism complements our ongoing reforms targeting consumer choice and more efficient network pricing outcomes.

The AER has today published a consultation paper to inform the development of a robust, best practice incentive scheme and allowance mechanism.

We invite interested stakeholders to submit written submissions on this consultation paper, in particular the options we have outlined and any creative or pragmatic ideas you might have for continued improvements.

We facilitated a whole-day demand management workshop, in September, where participants provided valuable opinions and ideas creating better knowledge and understanding of what the AER should be mindful of when designing a new scheme and allowance mechanism. The paper includes these insights.

This new scheme and allowance mechanism complements the AER’s mix of ongoing reforms to improve consumer choice and more efficient network pricing outcomes in the long term interest of consumers. These reforms include our work on tariff reform, metering contestability, ring-fencing, and reforming network planning to encourage transparent and efficient replacement expenditure.

We will continue to engage extensively with stakeholders throughout this process and anticipate finalising the new scheme and allowance mechanism around the end of the 2016-17 financial year.

Invitation for submissions

The deadline for submissions is close of business Friday 24 February 2017. Please email your submissions to Alternatively, you can mail a hard copy of your submission to:

Mr Warwick Anderson
General Manager, Network Regulation
Australian Energy Regulator
GPO Box 3131

Canberra ACT 2601

We prefer to make written submissions public to inform continued robust and transparent debate. We will treat submissions as public documents and post them on our website, unless you make prior arrangements with the agency to treat the submission, or portions of it, as confidential.

If you are wishing to submit confidential information, we request you:

  • clearly identify the information that is the subject of the confidentiality claim; and
  • provide a non-confidential version of the submission
  • we prefer electronic submissions (Microsoft Word file or other text readable document).
Issued date: 
4 January 2017
AER reference: 
AC 01/17
General enquiries - Demand management