Rule Changes: Completed

Demand Response Mechanism and Ancillary Services Unbundling

Reference:
ERC0186
Proponents:
COAG Energy Council
Decision:
Rule made
Amending rule:
2016 No.10
Commenced:
01-Jul-2017
Amending chapters:
1,2,3,11
Rule version:
Other rule versions:

Overview

On 24 November 2016, the AEMC made a draft determination and a rule, which is a more preferable draft rule, to provide for a new type of market participant – a market ancillary service provider - to offer customers’ loads into the frequency control ancillary services (FCAS) markets.

On 24 November 2016, the AEMC made a draft determination and a rule, which is a more preferable draft rule, to provide for a new type of market participant – a market ancillary service provider - to offer customers’ loads into the frequency control ancillary services (FCAS) markets. A market ancillary service provider will not need to be a customer’s retailer to offer such demand response services. The market ancillary service provider is required to satisfy certain registration requirements and deliver FCAS services in accordance with AEMO’s specifications just as any other market participant currently is required to do. The rule does not implement the proposed demand response mechanism (DRM) in the wholesale electricity market. The Commission considers the benefits associated with the proposed mechanism can be achieved without the need for a regulatory mechanism in the wholesale market, particularly as there are no barriers in the Rules to demand side participation in the market.

Background

On 30 March 2015, the AEMC received a rule change request to amend the National Electricity Rules from the COAG Energy to create a Demand Response Mechanism in the National Electricity Market, and unbundle the provision of ancillary services from the purchase and sale of electricity. The AEMC published a consultation paper to facilitate public consultation with stakeholders on 5 November 2015. The Commission also published a Draft determination on 1 September 2016. 

 

View more View less

Documentation

AEMC Documents

AEMC Documents

Submissions

Proposal Documents

AEMC Documents

Supporting Attachments

Submissions

Late Submissions