Early application of the new Demand Management Incentive Scheme - United Energy

Sector: 
Segment: 
Region: 
Status: 
Category: 
Demand management incentive scheme
Date completed: 
2 September 2019
Date initiated: 
20 June 2019
Effective date: 
1 November 2019
Contact: 
AER General inquiries AERInquiry@aer.gov.au
AER reference: 
53792

Overview

On 2 September 2019 the AER approved the application by United Energy for early access to the new Demand Management Incentive Scheme (DMIS).

United Energy's start date for the application of the new DMIS is 1 November 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.

On 7 June 2019, United Energy submitted a proposal to the AER for early application of the revised DMIS.

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.

On 15 March 2019 the AER approved the applications by Ausgrid and Endeavour Energy for early access to the new DMIS. Ausgrid's start date for the application of the new DMIS is 31 March 2019 and Endeavour Energy's start date is 1 April 2019.