The Australian Energy Regulator (AER) has approved the applications of AusNet Services and Energy Queensland, acting on behalf of Energex and Ergon Energy, for early access to the new Demand Management Incentive Scheme (DMIS).
Energex and Ergon Energy's start date for the application of the new DMIS is 15 December 2018. AusNet’s start date is 1 January 2019.
We published an improved 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.
Electricity distributors have submitted proposals to the AER to bring forward their projects under the new DMIS. In making its final decision, the AER must consider the proposal and any written submissions made on the proposal, and must have regard to relevant factors specified in the National Electricity Rules.