The Australian Energy Market Commission today released an Issues Paper for public consultation on Stage 2 of the Review of demand-side participation (DSP) in the National Electricity Market (NEM).
In consultation with the Review's Reference Group of experts the Commission has sought to identify issues in the Rules that may raise impediments or disincentives to efficient demand-side participation in the NEM.
Today's paper invites public comment to help the Commission identify issues that will be the focus of this stage of the Review. In particular the Commission is seeking views on whether the issues it has identified are appropriate, how material those issues are and comments on possible ways impediments or disincentives to demand-side participation in the NEM can be solved.
Some issues identified in this Paper may have simple solutions that are more easily implemented and would provide significant benefits for the operation of the NEM. Others will be more complex and may not generate sufficient benefits to justify their cost and complexity.
The Commission wants to identify simple, low cost and high impact issues to act on first. However, where a complex, high cost option may provide benefits in excess of the costs, it will want to ensure that those issues are identified and that work is started on considering them further.
Issues for public comment have been separated into five topic areas:
1. economic regulation of networks;
2. network planning;
3. network access and connection arrangements;
4. wholesale markets and financial contracting; and
5. reliability.
A second document released today is the Final Report for Stage 1 of the Review undertaken for the AEMC by NERA Economic Consulting. NERA was retained to provide an independent assessment of demand-side participation in the context of other major AEMC Reviews currently underway or recently completed.
The Commission will respond to the recommendations of this final report in each of the relevant projects as appropriate.
The Commission welcomes submissions from stakeholders by 20 June 2008 on all aspects of this Issues Paper. Submissions can be forwarded to submissions@aemc.gov.au.