Energy experts welcome Demand Response Mechanism 11 June 2020

Today the Australian Energy Market Commission (AEMC) announced that it would introduce a Wholesale Demand Response Mechanism (DRM).

The  DRM will pay large energy users, such as water treatment plants, if they reduce their energy use at times that benefit the energy system. Reducing demand during a heatwave, or when the output of generators is very low, can help keep the electricity system stable and lower energy bills for all energy users.

This reform will support the development of more demand response capacity in the National Electricity Market (NEM), and has long been advocated by a broad coalition consumer, environment and industry groups.

The AEMC’s Chief Executive, Benn Barr, said:

“We have considered requests to delay this reform, but we think the case for pressing forward is strongest because acting now will help keep the power system reliable and secure ahead of the 2021/22 summer. Despite COVID, we still need to keep prices down, keep the market working efficiently and work to lower emissions in the energy sector.”

The Energy Efficiency Council’s CEO, Luke Menzel, said:

"Kudos to the AEMC for pushing ahead with this crucial reform. And congratulations to the many passionate advocates that have driven this conversation over the last decade. The hard work has paid off, and resulted in a rule change that will deliver lower energy bills for everyday Australians.”

Media Contact:

Rob Murray-Leach
Head of Policy, Energy Efficiency Council
T: 0414 065 556