Rule Change: Completed
Overview
On 5 December 2019 the AEMC published a final determination and a more preferable final rule to apply an innovation allowance to transmission networks.
Introducing the demand management innovation allowance (DMIA), as proposed by Energy Networks Australia (ENA), will encourage transmission businesses to expand and share their knowledge and understanding of innovative demand management projects that may reduce long term network costs – which could ultimately lower electricity bills for consumers.
ENA also proposed to extend the demand management incentive scheme (DMIS) to transmission. However, the Commission was not satisfied that the benefits of applying the DMIS would outweigh the upfront costs to consumers. If the DMIS was implemented, transmission businesses would receive incentive payments for undertaking non-network options that they would already have been required to adopt under the regulatory investment test for transmission (RIT-T).
Draft determination
On 12 September 2019 the AEMC published a draft determination and a more preferable draft rule. Submissions on the draft rule determination closed on 24 October 2019 and can be found below.
Consultation paper
On 23 May 2019 the AEMC published a consultation paper on the rule change request. 11 submissions were received and can be found below.