The AER has published draft versions of its new demand management incentive scheme and innovation allowance mechanism.

The scheme’s objective is to provide electricity distribution businesses with an incentive to undertake efficient expenditure on non-network options relating to demand management. The separate allowance mechanism’s objective is to provide distribution businesses with funding for research and development in demand management projects that have the potential to reduce long term network costs.

AGL has made a submission to the AER's draft papers, which is available here.