Consultation Regulation Impact Statement – Australian Energy Market Commission
On 12 September 2019, the Australian Energy Market Commission (AEMC) released the draft rule determination for the National Electricity Amendment (Demand management incentive scheme and innovation allowance for TNSPs) Rule 2019 (draft determination). This is to make a more preferable draft rule, that is to apply the Demand Management Innovation Allowance mechanism (DMIA), and not the Demand Management Incentive Scheme (DMIS), to transmission network service providers. The AEMC has also released the corresponding Draft National Electricity Amendment (Demand management incentive scheme and innovation allowance for TNSPs) Rule 2019 for consultation.
By introducing a DMIA for transmission, the Commission's draft rule will create a source of potential funding for networks to overcome the ‘practical implementation barriers’ of non-network alternatives and recover their efficient costs – in addition to the AER’s approved revenue allowance and Australian Renewable Energy Agency (ARENA) funded projects.
Further, a DMIA for transmission is expected to encourage transmission businesses to expand and share their knowledge and understanding of innovative demand management projects that have the potential to reduce long term network costs and, consequently, could lower prices for consumers
The draft determination has been assessed by the Office of Best Practice Regulation as compliant with requirements for a Council of Australian Governments Consultation RIS.
Submissions are invited by close of business, 24 October 2019. More information on the consultation process, including how to make a submission, can be found here.
Please note: the draft determination is web accessible in PDF only and any accessibility queries should be directed to the Australian Energy Market Commission.