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

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

Overview

On 7 June 2019 the AER received an application from United Energy to apply the new Demand Management Incentive Scheme (DMIS) by 1 November 2019.

The National Electricity Rules (NER) require that, prior to making a decision on each application, we seek submissions from stakeholders on the proposals from electricity distributors for the early implementation of the new DMIS.

Invitation for submissions

We invite interested stakeholders to make written submissions in response to United Energy's proposal for early application of the revised DMIS. Submissions will be accepted until the close of business 23 July 2019.

The AER prefers that all submissions be sent in an electronic format in Microsoft Word or other text-readable document form and publicly available, to facilitate an informed, transparent and robust consultation process. Submissions should be emailed to AERinquiry@aer.gov.au with the subject line 'United Energy - Early application of DMIS'.

Alternatively, submissions can be sent to:

Mr Chris Pattas
General Manager
Australian Energy Regulator
GPO Box 520
Melbourne Vic 3001

Submissions will be treated as public documents and posted on the AER's website unless prior arrangements are made with the AER to treat the submission, or portions of it, as confidential. Those wishing to submit confidential information are requested to:

  • clearly identify the information that is the subject of the confidentiality claim; and
  • provide a non-confidential version of the submission.

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. 

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.