The wholesale demand response mechanism (WDRM) allows large electricity users to be paid for reducing their consumption when the grid is under stress – for example, a factory temporarily switching off equipment during peak demand periods.
The Commission maintains its commitment to strengthening demand-side participation in the national electricity market (NEM) to enable improved market and consumer outcomes.
The recent Integrating price-responsive resources into the NEM (IPRR) and Unlocking CER benefits through flexible trading (CER benefits) final rules are the main vehicles for driving demand-side participation in the market.
AEMC Chair, Anna Collyer, said the review is timely given the AEMC’s recent work on two-sided market solutions.
“The AEMC’s work through integrating price responsive resources means that there are new opportunities for both energy suppliers and users to participate in ways that weren’t possible before,” Ms Collyer said.
“The WDRM continues to have a useful role alongside these broader market reforms, allowing certain types of demand response to participate in the wholesale market.”
The AEMC’s second draft recommendation is that the pending rule change request, Expanding eligibility under the WDRM, should be initiated to assess whether sites with multiple connection points should be allowed to participate in the mechanism. This has the potential to increase participation in the WDRM and deliver additional benefits.
Submissions to the draft report are due by 14 August 2025.
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