Early application of the new Demand Management Incentive Scheme

Demand management incentive scheme
Date initiated: 
12 September 2018
General enquiries - Compliance AERCompliance@aer.gov.au


We published an improved Demand Management Incentive Scheme (DMIS) in December 2017 to encourage distribution businesses to find lower-cost solutions to investing in network solutions. The incentive scheme achieves this by encouraging distribution businesses to undertake efficient expenditure on non-network options relating to demand management. To enable greater uptake of the new DMIS, we requested the Australian Energy Market Commission (AEMC) to approve amendments to the National Electricity Rules (NER) to allow early application of the new DMIS. These amendments were made in July 2018.

Applications received under the new DMIS

Three electricity distributors have now made applications to bring forward their projects under the new DMIS.

  • AusNet Services: a Victorian distributor—applied to the AER on 12 September 2018 for the early application of the new DMIS.
  • Energy Queensland: which includes Energex and Ergon Energy—applied on 27 September 2018 for the early application of the new DMIS.

Invitation for submissions

Energy consumers and other interested parties are invited to make submissions on the applications by close of business Monday 29 October 2018.