PIAC lodged a submission to a joint consultation paper from Energy Networks Australia and the Australian Energy Market Operator (AEMO).
The consultation was on potential models for a Distribution System Operator (DSO) which is intended to coordinate the growing levels of Distributed Energy Resources (DER), such as rooftop PV and batteries, in the electricity system. A DSO could assist in driving the most efficient investment in and use of DER which would help deliver affordable, sustainable electricity to consumers. However, we note that there is yet no clear definition of what a DSO is intended to achieve – and just as importantly, what is beyond scope of a DSO. In addition to more targeted response to the consultation questions, PIAC proposed developing a set of high-level principles to guide the design of any DSO including:
- Developing a more nuanced understanding of consumers and DER which accounts for the different reasons why consumers may invest in DER and the different barriers which may prevent consumers investing; and
- Developing a principles-based hierarchy to underpin how to resolve conflicts potential between the multiple services which DER can provide to ensure the benefits are equitably shared between all consumers.
