The AEMC has received two requests, from ENGIE and SIMEC Energy, to hold a pre-final rule determination hearing in relation to our draft determination to implement a wholesale demand response mechanism, pursuant to section 101 of the National Electricity Law. The hearing will be held on 6 August 2019.

The purpose of a pre-final rule determination hearing is to allow stakeholders to present their views on the draft determination to the Commissioners in person. Stakeholder presentations at these hearings are an input into the next stage of the AEMC’s decision-making. These hearings are not designed to provide a forum for discussion or debate with the Commissioners, AEMC staff or other stakeholders. They are in addition to all other consultation stages carried out by the AEMC.  

Date: Tuesday 6 August 2019
Time: 12:00pm to 1:30pm
Location: Pullman Sydney Hyde Park, 36 College Street, Sydney

Stakeholders wishing to attend and/or address the Commission at the hearing are required to register by 5pm on 2 August 2019 by submitting a registration form to the AEMC. The registration form is available on the project page. The purpose of the registration process is to provide advance notice of who will be in attendance for stakeholders that will be presenting at the hearing.

A full transcript of the hearing will be published on our website as soon as it is available.

Stakeholder workshops

The AEMC will be holding two stakeholder workshops on the draft determination. These workshops will provide an opportunity for stakeholders to discuss the draft determination and draft rule with AEMC staff and Commissioners.

  • The first workshop will be held on 16 August 2019 in Sydney and will focus on matters that arise specifically for retailers under the draft rule. Representatives from electricity retailer businesses can register for this workshop here.
  • The second workshop will be held on 22 August 2019 in Sydney and will be open to all interested stakeholders with questions or feedback about the draft rule. Stakeholders can register for this workshop here.

For those unable to attend the workshops, please contact Declan Kelly at Declan.Kelly@aemc.gov.au and a briefing can be arranged to answer stakeholder questions about the draft rule and determination.

For more information about the pre-final rule determination hearing or stakeholder workshops contact Mitchell Shannon on (02) 8296 0639 or mitchell.shannon@aemc.gov.au.

Draft determination

On 18 July 2019 the AEMC released a draft determination to implement a wholesale demand response mechanism.

Under the draft rule, a new category of registered participant, a demand response service provider (DRSP), would be able to bid demand response directly into the wholesale market as a substitute for generation. A DRSP could also engage directly with a customer without the involvement of that customer’s retailer.

The mechanism introduced under the draft rule is designed to provide greater opportunities for consumers to participate in the wholesale market by bidding in demand reductions as a substitute for generation, thereby unlocking under-utilised demand response in the national electricity market. The Commission considers that the mechanism will promote greater demand side transparency, as well as price and reliability-related benefits.

The Commission considers it important to provide opportunities to all consumers to participate in wholesale demand response. However, it is also important to make sure that appropriate energy-specific consumer protections are provided to consumers participating in the mechanism. As a result, the draft rule does not provide for small consumers to participate in the mechanism.

The substantive parts of the rule implementing the wholesale demand response mechanism are proposed to commence on 1 July 2022. The Commission has also made a series of complementary changes and recommendations relating to increasing transparency of wholesale demand response in the wholesale market. 

Submissions on the draft determination are due by 12 September 2019.

Media: Bronwyn Rosser, Communications Specialist, 0423 280 341; bronwyn.rosser@aemc.gov.au