On 13 March 2025, the Australian Energy Market Commission (AEMC) released a consultation paper on the Review of the Wholesale Demand Response Mechanism (WDRM).
The review will consider the role of the WDRM in enabling demand-side participation and its performance to date. In assessing the future of the WDRM, the AEMC will have regard to:
- whether recent regulatory and market developments have promoted a two-sided market and whether this has reduced or removed the need for the WDRM
- stakeholder feedback on participating in the WDRM and whether changes could increase participation in and the effectiveness of the WDRM.
The consultation paper sets out questions for stakeholders on three areas of the WDRM, including:
- the benefits and costs of the WDRM
- whether changes should be made to the design of the WDRM
- the accuracy and suitability of baselines used in the WDRM
Stakeholder feedback and analysis will inform the AEMC on whether the WDRM should be changed, remain as is, or be phased out.
The AER made a submission to the consultation paper on 17 April 2025.