Market Review: Completed


For all background information on Power of choice review click here.
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Power of choiceFor all background information on Power of choice review click here.


On 29 March 2011, the Ministerial Council on Energy (MCE) directed the AEMCPower of choice to undertake a further Review into Demand Side Participation (DSP) in the National Electricity Market. This Review is titled: Power of Choice - giving consumers options in the way they use electricity (formerly Stage 3 DSP Review).

The purpose of the Review was to identify market and regulatory arrangements that would enable the participation of both supply and demand side options in achieving an economically efficient demand/supply balance in the electricity market.

The Review was to have a broad focus that extends beyond the National Electricity Rules. It will consider all arrangements that impact on the electricity supply chain.  In undertaking the Review, the AEMC is to consider the following key areas:

  • market frameworks to maximise value to consumers from services enabled by new technologies, such as smart grids;
  • effectiveness of regulatory arrangements for energy efficiency; and
  • efficient operation of price signals.

These key areas are to be considered along with any other matters that the AEMC considers relevant to the objective of the Review.  Details of each of these areas for investigation can be found in the MCE's Terms of Reference, as outlined below.

The Review followed work already undertaken by the AEMC regarding DSP in the NEM.  Further information about the AEMC's previous Reviews of DSP in the NEM (Stages 1 and 2) can be found at

Information Sheet - General

MCE Terms of Reference


The final report and proposed implementation plan were provided to Standing Council on Energy and Resources (SCER), formerly MCE, for their consideration on 30 November 2012.

On 6 September 2012 the AEMC published the draft report for the Power of choice review. The draft report sets out the AEMC’s draft recommendations for supporting market conditions necessary to deliver efficient DSP.

We have also published a number of consultancy reports that were used to guide some of the recommendations in the draft report.

On 21 December, the AEMC published three background consultant research reports for the Power of choice review. These reports relate to:

  • the opportunities for demand side participation (DSP) given the current nature of electricity use in the market (Ernst and Young);
  • a stocktake and analysis of current DSP options available based on existing DSP and pilots and trails occurring across the market (Futura Consulting), and
  • Investigation of efficiency of current price signals in the NEM (PwC).

These reports formed input as appropriate to our Directions paper. Stakeholder feedback on the reports is welcome through our consultation submission phase for the directions paper.

On 15 July 2011 the AEMC published an Issues Paper for the Power of Choice Review. The Issues paper outlines the approach and methodology we propose to adopt in identifying the market conditions and market and regulatory arrangements needed across the electricity supply chain to facilitate the efficient investment in, operation and use of demand side participation (DSP) in the NEM. The paper also canvasses some of the issues for consideration in the Review.


Stakeholder Reference Group

In accordance with the MCE Terms of Reference for this review, the Commission is required to set up a Stakeholder Reference Group (SRG). The Terms of Reference for the SRG and its list of members are provided below. For each meeting, the synopses and presentations will also be made available. 

Synopses and presentations made at those meetings are provided below.


Wording of footnote 232 on page 157 of Australian Energy Market Commission, Power of choice – giving consumers options in the way they use electricity, directions paper, AEMC, 23 March 2012 has been changed to the following:

EUAA, response to AEMC issues paper Power of choice – giving consumers options in the way they use electricity, submission to the AEMC page 9, 26 September 2011: In addition, none of the EUAA’s members reported direct contact from DNSPs seeking DSP capacity.

We apologise to readers for any confusion caused.

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AEMC documents

Late submissions

Submissions on Directions Paper

Consultant reports


AEMC workshop

Public forum

Stakeholder Reference Group meetings


AEMC documents

Late submissions

Submissions on Issues Paper


AEMC documents

Late submissions

Australian Energy Regulator - received 12 October 2012 Energy Networks Association - received 12 October 2012
Energy Networks Association - Pilots and trials report on smart metering and related matters Energy Networks Association - Incentives for network driven DSP
Origin - received 12 October 2012 Simply Energy - received 12 October 2012
South Australian Council of Social Service - received 12 October 2012 ACOSS - received 15 October 2012
Alternative Technology Association - received 15 October 2012 Alternative Technology Association - Supplementary Paper One
Ethnic Communities Council of NSW Inc. - received 15 October 2012 Total Environment Centre - received 15 October 2012
International Power GDF SUEZ - received 16 October 2012 Alinta Energy - received 18 October 2012
EnergyAustralia - received 18 October 2012 Energy Efficiency Council - received 18 October 2012
Landis+Gyr - received 18 October 2012 Ausgrid - received 19 October 2012
Ergon Energy - received 19 October 2012 Government of South Australia - Department for Manufacturing, Innovation, Trade, Resources and Energ
Grid Australia - received 19 October 2012 Silver Spring Networks - received 22 October 2012
Energy Supply Association of Australia - received 23 October 2012 Energy Supply Association of Australia - Attachment A - Economic implications of the proposed Demand
Private Generators Group - received 23 October 2012 Private Generators Group - Attachment
National Generators Forum - received 26 October 2012 National Generators Forum - Attachment
Department of Primary Industries - received 29 October 2012 Public Interest Advocacy Centre - received 5 November 2012

Submissions on Draft Report

Consultant reports