The slow re-balancing act: Submission in response to the Demand Management Incentive Scheme Rule 2015 Consultation Paper

Demand management needs to be part of ensuring efficient costs for consumers, which is why it was included in the National Energy Market (NEM) ambitions from the beginning. This submission supports the Demand Management Incentive Scheme (DMIS) Rule 2015 and considers that it is pre-emptory for the AEMC to assume that network pricing will result in significant changes to consumer behaviour. The submission outlines how it is useful for consumers to have clarity about the existence, role and reporting requirements for the Incentive Allowance (DMIA) in the rules and that a relatively small DMIA is appropriate if there is an effective Incentive Scheme (DMIS) alongside it.  The clear, consistent, regular, public and transparent reporting of expenditure and outcomes is recommended for both the DMIA and DMIS as a matter of good practice and accountability. PIAC is comfortable with a 30 per cent benefit capture share proposed by the COAG Energy Council, consistent with other benefit-sharing schemes.