The Australian Energy Market Commission (AEMC) will conduct and complete its review of the Wholesale Demand Response Mechanism (WDRM) by 24 October 2025, to allow time to properly investigate "two-sided" market options proposed in closely related reforms.

The WDRM aims to enhance the flexibility and reliability of the National Electricity Market (NEM) by allowing demand response to bid directly into the wholesale market as a substitute for generation.

In its final determination and ruling to establish the WDRM, the AEMC scheduled a self-initiated review of the costs, benefits and effectiveness of the mechanism to take place by 24 October 2024.  

However, in deciding to delay the review by 12 months, AEMC Chair Anna Collyer acknowledged the need to complete work on rule changes that go towards better integrating demand response and consumer energy resources.    

‘’The AEMC is currently investigating two-sided market solutions that would potentially contribute to a future state of the NEM that offers more affordable and cleaner energy,” she said.

‘’These rule changes are Integrating price-responsive resources into the NEM (IPRR) and Unlocking CER benefits through flexible trading rule changes.  Delaying the review of the WDRM will allow the AEMC to consider findings from these two rule changes as part of the review.’’

This delay will result in the Commission breaching its rules requirement to complete this review by October 2024. The AEMC has deemed this necessary, given the impact these rule changes may have on the direction of the review.  To commence the review in advance of these rule changes would likely lead to an incomplete consideration of how best to integrate demand response into the NEM.  

The AEMC is aware that stakeholders have expressed interest in the progress of the Review into the WDRM, and the Commission is committed to conducting a detailed review.  

Stakeholders will have two opportunities to provide their feedback, at Consultation stage and the Draft Report stages, before the AEMC delivers its final report.  

For more information, visit the project page.

Media: Jessica Rich | 0459 918 964 | media@aemc.gov.au