Wholesale Demand Response Participation Guidelines - Notice of Consultation and Issues Paper

The Australian Energy Market Commission (AEMC) on 11 June 2020 published its Final Rule determination to introduce a new Wholesale Demand Response Mechanism into the National Electricity Market (NEM). Under this rule, eligible large consumers will be able to sell a reduction in their load by way of demand response into the NEM from the effective date, 24 October 2021.

As part of these reforms, the Australian Energy Regulator (AER) must develop Wholesale Demand Response Participation Guidelines. These Guidelines must include guidance about information Demand Response Service Providers (DRSP) must keep regarding compliance with their obligations.

The Guidelines may also include guidance in respect of DRSP obligations in relation to bidding wholesale demand response units when they are baseline non-compliant, or when they will be, or are likely to be, spot price exposed.

Today we have published an Issues Paper seeking comments about the information DRSPs must retain regarding compliance with their obligations under the new Rule. The Issues Paper also seeks feedback on what guidance may help DRSPs to better understand their bidding obligations under the new Rule. This feedback will assist the AER to determine the scope of such guidance that may be appropriate and useful to include in the Guidelines.

We note that following review of the AEMC’s final rule, the AER does not consider that the Rebidding and Technical Parameters Guideline requires updating at this time as a consequence of the introduction of the Wholesale Demand Response Mechanism.

Invitation for submissions

AER invites interested parties to make written submissions in response to the Wholesale Demand Response Participation Guidelines Issues Paper by the close of business Friday, 23 April 2021. Submissions should be sent electronically to: aerinquiry@aer.gov.au  in electronic format such as Microsoft Word; or a similar text-readable format. Alternatively, submissions can be sent to:

Jacqui Thorpe
General Manager – Compliance and Enforcement
Australian Energy Regulator
GPO Box 520
Melbourne VIC 3001

To facilitate an informed and transparent consultative process, submissions will be treated as public documents and posted on our website unless prior arrangements are made to treat as confidential. Those wishing to submit confidential information are requested to clearly identify any information that may be part of of a confidentiality claim: providing  a non-confidential versions of the submission.

For further information regarding our use and disclosure of information provided to us, see the ACCC/AER Information Policy.

Issued date: 
12 March 2021
AER reference: 
AC 28/21
AER Media 0466 409 921 media@aer.gov.au