PDRS legislation

The legal framework underpinning the Peak Demand Reduction Scheme (PDRS) includes:

  • Electricity Supply Act 1995 (the Act)
  • Electricity Supply (General) Regulation 2014 (the Regulation)
  • Peak Demand Reduction Scheme Rule of 2022 (the PDRS Rule)
  • Peak Demand Reduction Scheme Compliance Rule of 2022 (the PDRS Compliance Rule)
  • Peak Demand Reduction Scheme (Electricity Load Exemptions) Order
  • PDRS Exemptions Rule.

The Act

The Electricity Supply Act 1995 (the Act) established the PDRS under Part 2 of Schedule 4A to the Act and sets out its legal framework. This includes IPART’s functions and responsibilities as the Scheme Administrator and Scheme Regulator.

The Regulation

The Electricity Supply (General) Regulation 2014 (the Regulation) has more details about the core functions of the Scheme Administrator and the Scheme Regulator.

Part 7 of the Regulation sets out:

  • peak demand reduction targets, the peak demand period and PDRS penalty rates
  • for the Scheme Administrator, requirements for accrediting and auditing Accredited Certificate Providers (ACPs), and rules around creating and transferring Peak Reduction Certificates (PRCs)
  • for the Scheme Regulator, the principles governing compliance with the individual certificate targets for scheme participants.

The PDRS Rule

The Peak Demand Reduction Scheme Rule of 2022 (PDRS Rule) applies to Accredited Certificate Providers (ACPs) and peak demand reduction activities. It has details about:

  • Recognised Peak Activities
  • information an ACP must provide to create a PRC
  • eligibility, equipment and implementation requirements for each activity
  • calculation methods to work out how many PRCs an ACP can create.

See the PDRS Rule and changes page for more information.

PDRS Compliance Rule 

The Peak Demand Reduction Scheme Compliance Rule of 2022 (PDRS Compliance Rule) sets out:

  • how the Scheme Regulator must calculate the forecast peak demand for the compliance period
  • the method scheme participants must use to determine the individual liable demand for electricity that is not purchased from AEMO and not measured by an interval meter.

The Ministerial Order - Exempt Electricity Loads

The Act allows the Minister to publish an Order in the Gazette granting a full or partial exemption from the PDRS for electricity loads used for:

  • some emissions intensive and trade exposed energy activities, or
  • the production of green hydrogen (sch 4A cl 93).

See the Exemptions legislation page for details of the Ministerial Order.

The PDRS Exemptions Rule

The Minister authorises the Scheme Regulator to make rules relating to the treatment of exempt electricity loads. This is authorised in the PDRS Exemptions Order.

The Peak Demand Reduction Scheme - Scheme Regulator Exemptions Rule No.1 of 2023 (PDRS Exemptions Rule) outlines how scheme participants:

  • calculate deductions for exempt electricity loads
  • calculate deductions for losses
  • establish their entitlement to the exemption.

More information