AEMC calling for submissions on new market participant category proposal

The Australian Energy Market Commission (AEMC) is calling for submissions on a proposal to create a new category of market participant who would have the ability to negotiate deals with energy users to offer demand response.

The AEMC has issued a draft determination on a rule request to create a standardised demand response mechanism in the wholesale electricity market, proceeding instead with a more preferable draft rule change to improve competition in the provision of ancillary services that will help maintain power system security.

John Pierce, AEMC Chairman, stated ““Market developments and innovation by demand side management providers means large customers, retailers and network businesses can already enter commercial arrangements directly with one another or access a relatively competitive demand-side market.  At least 21 businesses are providing a variety of products and services across all major jurisdictions in the National Electricity Market.

“Retailers and demand-side service providers expect this to increase in the future. The ability of smaller consumers to exercise their demand response is likely to increase as the latest market reforms started by the Power of Choice review start to take effect from 1 July 2017,” he said.

The information sheet for the proposal can be found here.