Rule Change: Open

Overview

This rule change request from the Australian Energy Council seeks to introduce a register for wholesale demand response in the national electricity market.
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This rule change request from the Australian Energy Council seeks to introduce a register 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.

Consultation paper

On 15 November 2018 the Commission published a consultation paper seeking stakeholder feedback on the key issues in the rule change requests. Submissions were due by 21 December 2018. 33 submissions were received and can be found below.

Extension

On 7 February 2019 the Commission extended the period of time for making the draft determination for each of the three rule change requests to 19 July 2019 under section 107 of the National Electricity Law (NEL) and section 266 of the National Electricity Retail Law (NERL). The Commission considers that this extension is necessary due to the complexity of the issues raised in the three related rule change requests. In addition, stakeholders raised a number of complex issues in submissions to the consultation paper. Several stakeholders also requested that additional time be allowed for consideration of these issues and further consultation.

The extension will allow the Commission to undertake additional stakeholder consultation as well as incorporate outcomes from trials related to wholesale demand response.

Due to the revised publication date for the draft determination, the Commission has also extended the time for making the final determination for each of the three rule change requests to 14 November 2019 under section 107 of the NEL and section 266 of the NERL. 

Stakeholder consultation

The Commission will hold a stakeholder workshop on 5 March 2019 in Melbourne to discuss the rule change requests. Stakeholders can register for the forum here. Further details on the agenda for the workshop will be made available shortly. 

The Commission is also forming a technical working group of experts from industry, demand response providers and consumer groups. The group will provide technical input into the development and assessment of the rule change requests. The notes from these meeting will be published on this project page. 

Background

On 15 November 2018 the Commission initiated this rule change, alongside the related rule changes received from the PIAC, TEC and TAI, and the South Australian Government.

Reliability work plan

These rule change requests follow the Commission’s consideration of wholesale demand response in its Reliability frameworks review. 

The AEMC’s final report for the Reliability frameworks review, published in July 2018, included a collaborative Reliability work plan with a series of actions to be progressed by the AEMC, AEMO and the AER.

One of the actions is to integrate 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. AEMO has submitted a rule change request to us on this issue.
  • 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.

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