Demand Management Innovation Allowance Mechanism
The Demand Management Innovation Allowance Mechanism (DMIAM) provides distribution businesses with funding for research and development in demand management projects that have the potential to reduce long term network costs.
Our DMIAM complements our demand management incentive scheme (DMIS) by increasing the capacity of distribution businesses to invest in ideas that may eventually form parts of projects under the DMIS.
The DMIAM applies to distribution business’ eligible projects as set out in the AER’s distribution determination for each distribution business. To receive the allowance, the distribution businesses must report on their projects to us. Distribution businesses must provide to us any other information required to enable an informed reader to understand, evaluate, and potentially reproduce the demand management approach of an eligible project. A key objective of the AER’s DMIAM is to assist in enhancing industry knowledge of practical demand management projects through the publication of DMIAM activity reports from distributors.
We are responsible for assessing DMIAM compliance reporting for each distribution business each regulatory year.
Outcome 2022-23
For the 2022-23 reporting period, we have approved the DMIAM expenditures of $9.53 million.
A summary report of how the distribution business' used the DMIAM to shift or reduce customer demand can be found in the Networks Performance Report (Appendix B).
Each distribution business' annual submission of their DMIAM projects are provided below.