Early application of the new Demand Management Incentive Scheme - Endeavour Energy and Ausgrid

Sector: 
Segment: 
Status: 
Category: 
Demand management incentive scheme
Date initiated: 
20 December 2018
Contact: 
General enquiries - Compliance AERCompliance@aer.gov.au

Overview

On 20 December 2018, Endeavour Energy submitted a proposal to the Australian Energy Regulator (AER) for early application of the revised Demand Management Incentive Scheme (DMIS). Ausgrid submitted a similar proposal on 8 January 2019.

We invite energy consumers and interested parties to make submissions on Endeavour Energy's and Ausgrid's proposals by close of business on 13 February 2019.

Background

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.

Previously approved applications

On 11 December 2018, the AER approved proposals from AusNet Services and Energy Queensland (acting on behalf of Energex and Ergon Energy) for early access to the revised 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.