Electricity consumers will be paid for reducing their power demands under a radical change to the market that will be introduced next year.
Key points:
- ‘Wholesale demand response’ will come into effect in October 2021, allowing large electricity users to be paid for reducing demand
- Big energy generators and retailers had wanted to delay the change, citing the COVID-19 crisis
- Some advocacy groups want to extend the scheme to households and small businesses
The historic rule change announced today will allow what’s known as “wholesale demand response” — where the wholesale market can pay users for cutting electricity consumption, rather than paying electricity generators to increase supply, when the system is under strain.
The shift, which will begin in October 2021, has been adopted by the Australian Energy Market Commission (AEMC) despite opposition from big energy generators and retailers, who were