AER seeks stakeholder input on the design of the Demand Management Innovation Allowance Mechanism for transmission networks

The Australian Energy Regulator (AER) is developing a new Demand Management Innovation Allowance Mechanism (DMIAM) for Transmission Network Service Providers (TNSP). This allowance mechanism complements our ongoing reforms targeting more efficient network pricing outcomes.

The AER has today published an issues paper to inform the development of a robust, fit for purpose allowance mechanism. If appropriately applied, the mechanism will deliver long-term benefits to consumers through better management of energy demand.

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

In preparing the issues paper we consulted with TNSPs on their suggestions of potential projects under the DMIAM. This paper includes these insights.

We will continue to engage extensively with stakeholders throughout this process and anticipate finalising the new allowance mechanism around the first half of 2021.

Invitation for submissions

We invite interested parties to make submissions on the issues paper by Friday 2 October 2020.

Submissions should be emailed to

Alternatively, you may mail submissions to:

Ms Kami Kaur
Acting General Manager
Australian Energy Regulator
GPO Box 520
Melbourne, Victoria, 3001

We prefer that all submissions be publicly available to facilitate an informed and transparent consultative process. We will treat submissions as public documents unless otherwise requested. All non-confidential submissions will be placed on the AER's website. For further information regarding the AER's use and disclosure of information provided to it, see the ACCC/AER Information Policy.

We request parties wishing to submit confidential information:

  • clearly identify the information that is the subject of the confidentiality claim
  • provide a non-confidential version of the submission in a form suitable for publication.
Issued date: 
14 August 2020
AER reference: 
AC 115/20
AER General Inquiries