The role of scheme participants

About the Energy Security Safeguard

The Energy Security Safeguard (the Safeguard) is an initiative of the NSW Government. Its purpose is to help ensure our energy system is more reliable, affordable and sustainable.

The Safeguard is established in the Electricity Supply Act 1995 (Act) and given effect through the following schemes.

Energy Savings Scheme Peak Demand Reduction Scheme
This scheme supports energy saving activities for households and businesses across NSW. This scheme supports activities that reduce demand at peak times, including flexible demand response.

A third scheme - the Renewable Fuel Scheme - has been legislated but is not yet operational.

The Act identifies scheme participants and requires them to participate 

The Act identifies entities required to participate in each scheme. These are known as scheme participants. Scheme participants are identified in the table below, along with the clause in the Act that requires them to participate. 

Energy Savings Scheme Peak Demand Reduction Scheme
  • retailers
  • direct suppliers of electricity
  • market customers
  • retailers
  • direct suppliers of electricity
  • market customers within the meaning of the National Electricity Rules
Clause 4 of Schedule 4A to the Act  Clause 83 of Schedule 4A to the Act

Retailers

A retailer is a person who holds an electricity retailer authorisation issued under the National Energy Retail Law (NSW) 2012.

Direct suppliers

A direct supplier of electricity is a generator or other person specified in clauses 29 and 59C of the Electricity Supply (General) Regulation 2014 who supplies electricity directly to a customer.

Market customers

The National Electricity Rules define a market customer as: 

  • a customer in relation to the connection points it has classified as market connection points under Chapter 2 of the National Electricity Rules
  • an Integrated Resource Provider in relation to the connection points it has classified as market connection points under clause 2.3.4(b) of Chapter 2 of the National Electricity Rules.

Market customers are energy customers who buy electricity directly from the National Electricity Market.

Scheme participants’ role in the schemes 

Our Scheme participant obligation page explains scheme participant obligations in detail.

IPART’s role in the Safeguard 

IPART is the Scheme Administrator and Scheme Regulator of the ESS and PDRS.

More information