Early access to new Demand Management Incentive Scheme

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Two energy distributors have been granted early access to the new Demand Management Incentive Scheme (DMIS) by the Australian Energy Regulator (AER)

Applications of early access from AusNet Services and Energy Queensland, acting on behalf of Energex and Ergon Energy, were approved.

Energex and Ergon Energy will have a start date of 15 December 2018 while AusNet’s start date for application of the new DMIS is 1 January 2019.

The AER published details of the new DMIS in December 2017. The new scheme encourages distribution businesses to find lower cost solutions to investing in network solutions.

To enable greater uptake of the new DMIS, the AER requested the Australian Energy Market Commission (AEMC) approve amendments to the National Electricity Rules to allow early application of the new DMIS. These amendments were made in April 2018.

Three distributors – AusNet Services, Energex and Ergon Energy – subsequently made applications to bring forward DMIS projects.

The AER considers the proposals by AusNet Services, Energex and Ergon Energy demonstrate a track record of implementing demand management projects – and further projects currently at the planning stage – that meet the requirements of the scheme.

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