Energy Market Reform Bulletin No. 28 - Demand Response Mechanism (DRM) Cost Benefit Analysis - Consultation Paper
Publication date: Monday, 25th August 2014.
The Demand Response Mechanism (DRM) was a recommendation of the Australian Energy Market Commission in the 2012 Power of Choice review. The DRM was intended to facilitate large energy users to act as though they were non-scheduled generators in the wholesale market, and receive reimbursement for reducing energy demand in response to high price events.
In May 2014, officials contracted Oakley Greenwood to undertake further analysis of the DRM, including market modelling. Cost benefit analysis and market modelling require the development of complex and detailed assumptions, and identification of relevant data. These inputs need to be reasonable and realistic to ensure the modelling generates sensible outcomes.
Released on 25 August 2014, Energy Market Reform Bulletin No. 28 invited stakeholders to provide written submissions on a DRM consultation paper that outlined the potential methodology and data sources which Oakley Greenwood would draw upon to undertake their analysis.
All stakeholder submissions received in response to this consultation paper are available below, excluding where stakeholders clearly indicated that a submission should remain confidential, either in whole or in part.