The legal framework underpinning the Peak Demand Reduction Scheme (PDRS) is developed by the Office of Energy and Climate Change (OECC). It includes:
- Electricity Supply Act 1995
- Electricity Supply (General) Regulation 2014 (currently being revised)
- Peak Demand Reduction Scheme Rule of 2022 (currently being developed)
- Ministerial Orders (to be developed).
The Electricity Supply Act 1995 (the Act) established the PDRS under Part 2 of Schedule 4A to the Act. It sets out the legal framework of the PDRS including the functions and responsibilities of IPART as Scheme Administrator and Scheme Regulator.
The Electricity Supply (General) Regulation 2014 (the Regulation) supports the Act and provides more detail about the core functions of the Scheme Administrator and the Scheme Regulator.
The Regulation is being updated to include the PDRS in Part 7. Part 7 currently sets out peak demand reduction targets, peak demand period and PDRS penalty rates for the PDRS.
OECC will consult on the Regulation in the second half of 2022. You can register for updates on the Energy website. We will provide further details on the Regulation as they become available.
The PDRS Rule
The Peak Demand Reduction Scheme Rule (PDRS Rule) will support the Act and Regulation. It is currently being developed by OECC.
The PDRS Rule will apply to Accredited Certificate Providers (ACPs) and peak demand reduction activities. It will provide details about:
- eligibility requirements
- calculation methods for determining the number of peak reduction certificates that can be created.
The Activity Definitions in the first version of the PDRS Rule will closely relate to Activity Definitions in the Energy Savings Scheme. Further details are available on our Calculation methods and Activities pages.
Accreditation of eligible ACPs under the PDRS will commence after the PDRS Rule commences in the second half of 2022. More information about accreditation is available on the How to apply for PDRS accreditation page.
OECC is currently developing the PDRS Rule. Please visit the Energy website for more information.
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).
We will provide more information about Ministerial Orders as it becomes available.