Demand response (DR) enables energy consumers to be paid to reduce their usage. It is a critical part of an efficient, reliable, lowest cost energy system.
The Wholesale Demand Response Mechanism (WDRM) is the framework the National Energy Market’s (NEM) uses to guide the development of DR in Australia. It hasn’t yet not delivered on its potential, leaving consumers paying more for energy than necessary. But with reform it can change things.
That is why we made detailed recommendations in our response to the Australian Energy Market Commission’s (AEMC) Review of the WDRM, strongly supporting its retention and further reform.
Our recommendations include:
- Expanding the WDRM to include small users and households;
- Extending the WDRM so electricity users can be paid to use more power during periods of extreme oversupply, helping manage low demand; and
- Streamlining the process of adding baselines to enable wider participation.
What’s next?
Having been responsible for the initial proposal resulting in implementation of the WDRM, effective demand response is a long-term priority for us. We will continue to monitor this process closely, with AEMC set to issue its draft report on the WDRM in July and final report in October. We are also drafting further rule change proposals to progress our recommendations.
