AEMC invites submissions on 3 different proposals for for “Negawatts” to be included in the price setting process for Energy

On 15th November 2018 the AEMC published this notice, inviting submissions regarding three different rule change proposals received to follow a COAG Energy Council request for the AEMC to look into

This followed both:

  1. The AEMC’s earlier (2015) review of a similarly proposed mechanism – which created a Demand Response Mechanism in the FCAS market, but recommended no change in the Energy market; and
  2. A subsequent recommendation from the Finkel Review to re-consider such a change.

The three rule change proposals received have been as follows:

Date Received Organisation Description
31 Aug 2018 Public Interest Advocacy Centre, Total Environment Centre and the Australia Institute This proposal is for a mechanism that would allow third parties, such as demand response aggregators, to offer Negawatts into the wholesale market in a transparent, scheduled manner
18th Oct 2018 Australian Energy Council This proposal is for a register for Negawatts.  This would introduce an obligation for retailers to negotiate in good faith with third parties looking to provide wholesale demand response through a register.
30th Oct 2018 South Australian Government This proposal is for a Negawatt mechanism, as well as a separate, transitory market for Negawatts as an interim step.

Submissions on the consultation paper are due by 21 December 2018.


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