Rule Change: Open
This rule change request from the Public Interest Advocacy Centre, Total Environment Centre and the Australia Institute seeks to introduce a mechanism for wholesale demand response in the national electricity market.
It is one of three rule change requests that relate to wholesale demand response:
- On 31 August 2018 the Public Interest Advocacy Centre, Total Environment Centre and the Australia Institute submitted a rule change request seeking to introduce a mechanism for wholesale demand response.
- On 18 October 2018 the Australian Energy Council submitted a rule change request seeking to introduce a register for wholesale demand response.
- On 21 October 2018 the South Australian Government submitted a rule change request seeking to introduce a mechanism for wholesale demand response. It also proposes to introduce a separate, transitory market for wholesale demand response.
The rule change requests have not been consolidated at this time.
On 15 November 2018 the Commission published a consultation paper seeking stakeholder feedback on the key issues in the rule change requests. Submissions are due by 21 December 2018.
These rule change requests follow the Commission’s consideration of wholesale demand response in its Reliability frameworks review. The final report for this review recommended integrating more demand response in the wholesale market by:
- enabling demand response aggregators and providers to be recognised on equal footing with generators in the wholesale market and so offer wholesale demand response transparently into the market.
- implementing a voluntary, contracts-based short-term forward market that would allow participant-to-participant trading of financial contracts closer to real time. This will provide the demand side with more opportunities to lock in price certainty, making it easier for large demand side consumers to engage in the wholesale market and demand response in response to expected wholesale prices.
- allowing consumers to engage multiple retailers / aggregators at the same connection point (multiple trading relationships). This will promote competition between retailers, support new business models for demand response and provide consumers with greater opportunities to engage in wholesale demand response with parties other than their incumbent retailer.
These rule change requests relate to the first recommendation above.
Given the complexity and broad scope of the issues covered by the rule change requests, affecting many areas of the National Electricity Rules, the six month standard rule making process may need to be extended. Stakeholder views received in response to this paper will inform the timeline and process for this rule change.
Once submissions are received and considered, the Commission will notify stakeholders of the timeframes and the process that will be adopted for this rule change request.