The Coordinator of Energy (Coordinator) has undertaken a review, under clause 2.2D.1 of the Wholesale Electricity Market (WEM) Rules, of the rules for the participation of Demand Side Response (DSR) in the WEM.
Clause 2.2D.1(h) confers the function on the Coordinator to consider and, in consultation with the Market Advisory Committee (MAC), progress the evolution and development of the WEM and the WEM Rules.
The MAC established the DSR Review Working Group (DSRRWG) to support the Coordinator’s review. Papers and detailed minutes of the DSRRWG meetings are published on the Demand Side Response Review Working Group page and the relevant MAC papers and minutes are available on the MAC webpage at Market Advisory Committee.
The Review was being conducted in three stages:
- Stage 1 was a high level assessment of the participation of Loads/Demand Side Response across all WEM components and a review of demand side participation in other jurisdictions.
- Stage 2 was a gap analysis identifying any barriers and disincentives for Loads to participate across all components of the WEM and provide the services identified in Stage 1.
- Stage 3 will formulate recommendations for further action, if any, and develop Rule Changes, if necessary.
On 21 September 2023, Energy Policy WA published a Consultation Paper that presented the proposed outcomes of the Coordinator of Energy's Demand Side Response Review. The paper discussed the role of DSR and presented proposals for changes to:
- the commercial and regulatory framework that applies to loads that are seeking to connect on constrained access basis;
- the integration of constrained access loads into the Australian Energy Market Operator’s processes;
- the Electricity Industry (Metering Code) 2012 to allow better information sharing between Western Power and AEMO about the operation of DSR; and
- other changes to various WEM components to maximise the participation of DSR.
The public consultation process closed at 5:00pm (AWST) on 2 November 2023.
On 29 February 2024, an Information Paper on the Outcomes of the DSR Review was published. This paper also includes a summary of the consultation submissions and EPWA’s responses.
Energy Policy WA developed for consultation an Exposure Draft of WEM Amending Rules to give effect to the DSR Review outcomes outlined in the DSR Review Information Paper. The draft WEM Amending Rules were developed in consultation with the DSR Review Working Group.
An overview of the draft changes to the WEM Rules is provided on the first page of the Exposure Draft at the link below.
The window for submitting feedback closed at 5:00pm 24 April 2024.
Following consideration of stakeholder submissions on the Exposure Draft of the DSR Rules, EPWA finalised the WEM Amending Rules which included changes to implement Review Outcomes 1, 2 and 12. A summary of responses to submissions received on the Exposure Draft with regard to these outcomes can be found below.
Further engagement with Market Participants and the Australian Energy Market Operator (AEMO) demonstrated the need to reconsider Review Outcome 3 and Review Outcome 4. These were further consulted on through the Exposure Draft of WEM Amending Rules (Miscellaneous Amendments No. 3).
Stakeholders were invited to provide written feedback on these rules with consultation closing on 8 July 2024. EPWA also held a Transformation Design and Operation Working Group meeting on 18 June 2024 at which it presented the proposed amendments. Slides for that meeting are available here.
The final WEM Amending Rules to implement Outcomes 1, 2 and 12, as well as the revised proposal regarding submetering (originally DSR Review Outcome 3) have been incorporated into the Wholesale Electricity Market Amendment (Miscellaneous Amendments No 3) Rules 2024 and were approved by the Minister for Energy on 2 October 2024 and published in the Government Gazette on 4 October 2024.
The final WEM Amending Rules to implement the dynamic baseline will be included with the revised schedules of the WEM Amendment (Reserve Capacity Reform) Rules 2023. Responses to feedback on the drafting pertaining to the design of the dynamic baseline (Review Outcome 4) will be published when these WEM Amending Rules are published.
