Demand management innovation allowance mechanism (Transmission)

Demand management incentive scheme
Date initiated: 
14 August 2020
AER General Inquiries
AER reference: 


The 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 objective of the DMIAM is to provide TNSPs with funding for research and development in demand management projects that have the potential to reduce long term network costs.  If appropriately applied, the mechanism will deliver long-term benefit to consumers through better management of energy demand. 

On 14 August 2020, the AER published an issues paper to inform the development of a robust, fit for purpose DMIAM. 

On 17 December 2020, we released a draft transmission demand management innovation allowance mechanism (DMIAM) for consultation. Accompanying the draft DMIAM is an explanatory statement outlining our reasons for making the draft DMIAM and seeks stakeholders’ responses on our draft decision.