About the PDRS
About the Peak Demand Reduction Scheme
The Peak Demand Reduction Scheme (PDRS) is part of the NSW Energy Security Safeguard. It offers financial incentives for consumers to implement activities that reduce demand for electricity during peak times.
How the PDRS works
The PDRS works by creating a market for Peak Reduction Certificates (PRCs).
Scheme participants must surrender PRCs to meet their peak reduction target. This creates demand for PRCs.
PRCs represent the capacity to reduce peak demand from eligible activities carried out in homes or businesses. For example, installing more efficient air conditioning.
Accredited Certificate Providers (ACPs) work with consumers to carry out these activities. They offer a discount for carrying out the activity in return for becoming the ‘capacity holder’. As the capacity holder, the ACP can then create and sell PRCs.
Governance of the PDRS
IPART is the Scheme Administrator and Scheme Regulator. Our responsibilities include:
- accrediting businesses to create PRCs (ACPs)
- accepting products for use
- managing the online registry of certificates
- approving auditors
- monitoring scheme participant compliance
- consulting with stakeholders.
NSWDCCEEW is responsible for setting the policy and legal framework for the PDRS. It develops the rules and legislation, reviews the scheme and consults with stakeholders to improve how the scheme works.
Auditors check compliance and performance under the PDRS. Audits:
- confirm PRCs create genuine peak demand reduction capacity
- provide reasonable assurance that scheme participants are reporting accurately.