On 21 December 2011, AEMC published three consultants that form background information and help to inform the Commission’s1 considerations and analysis of issues for the review. The information provided in the reports will also be input to the development of the review directions paper, to be published in [early February
2012].

The directions paper will outline our views on the market conditions needed across the supply chain and directions on changes that might be required to market and regulatory arrangements to enable both supply and demand side options in achieving an economically efficient demand/supply balance in the electricity market.

The consultant reports relate to:
 the opportunities for demand side participation (DSP) given the current nature of electricity use in the market
 a stocktake and analysis of current DSP options available based on existing DSP and pilots and trails occurring across the market, and
 investigations of efficiency of current price signals in the NEM.

Background
On 29 March 2011, the Ministerial Council on Energy (MCE) directed the AEMC to undertake a further Review into Demand Side Participation (DSP) in the National Electricity Market. This Review is titled: Power of Choice - giving consumers options in the way they use electricity (formerly Stage 3 DSP Review).

The purpose of the Review is to identify market and regulatory arrangements that would enable the participation of both supply and demand side options in achieving an economically efficient demand/supply balance in the electricity market.

The Review is to have a broad focus that extends beyond the National Electricity Rules. It will consider all arrangements that impact on the electricity supply chain. In undertaking the Review, the AEMC is to consider the following key areas:

market frameworks to maximise value to consumers from services enabled by new technologies, such as smart grids;
effectiveness of regulatory arrangements for energy efficiency; and
efficient operation of price signals.

These key areas are to be considered along with any other matters that the AEMC considers relevant to the objective of the Review. Details of each of these areas for investigation can be found in the MCE's Terms of Reference.

Timelines for the Review
The timeline of key milestones for the Review are as follows:
Issues paper release
15 July 2011
Issues paper submissions due
26 August 2011
Directions Paper
released 23 March 2012

Submissions due 4 May 2012

Public Forum
To be confirmed
Draft Report
May 2012
Public Forum
To be confirmed
Final Report
Sept 2012