Demand flexibility is a critical part of an efficient energy system, and a key part of ensuring an energy system transition at lowest possible cost to consumers.
The Wholesale Demand Response Mechanism (WDRM) rewards commercial and industrial energy users for demand flexibility, helping lower wholesale energy prices and supporting reliability. But reform is needed to expand the role the WDRM can play and ensure it has the intended impact on energy costs.
That’s why we support VIOTAS’ application for a waiver, outlined in the AER’s VIOTAS Sandbox trial waiver application consultation paper. This proposal would trial changes in the provision of demand response services to large users, enabling those with more than one connection point to participate and substantially expanding the scope for participation.
We have previously supported this change as part of a range of measures to expand and improve the WDRM to ensure it supports better outcomes for all energy consumers.
What’s next?
Enabling and expanding participation in the WDRM is crucial for a fairer and more affordable future energy system. Having proposed the rule introducing the WDRM, we will continue to support reforms which improve its uptake and effectiveness, including expanding it to cover household consumers.
