New research from The Australia Institute has shown how the world’s major electricity markets are opening up to demand response competition, which will benefit consumers with lower prices and help maintain reliability.
“The rest of the world is charging ahead with energy market modernisation and Australia is now poised to make a major reform that will put us at the leading edge,” said Dan Cass, Energy Policy & Regulatory Lead at The Australia Institute.
“The three biggest electricity markets in the world are moving to open up their networks to demand response competition: China, the United States of America and the European Union.
“Demand response is vital for helping maintain reliability and security of supply when AGL’s Liddell power station closes in 2023.
“The Australian Energy Market Commission is holding a Hearing today into a wholesale demand response rule change.
“The big energy retailers want to prevent competition. They want to be the gate-keepers and decide whether or not their customers participate in emerging, digital energy markets.
“The ACCC has rejected the AEC gate-keeper model, because it is anticompetitive and would harm the interests of energy consumers.
“Progressing this reform and allowing everyone, including big industrial users and regular households, to engage in demand response as soon as possible will reduce energy costs and emissions while also improving reliability.”
Keeping up with the competition: Global trend to demand response is available for download here