EUAA Submission: AEMC Review of the Wholesale Demand Response Mechanism (WDRM) Draft Report
Emily Wood | August 14, 2025
WDR has had very little uptake compared to its estimated potential due to its complexity and transfer of risk to participants. There is now an opportunity to correct these errors in the WDR design to allow members to participate.
‘…. The EUAA is very supportive of the AEMC creating a workable two-sided market. However, take up of the WDRM has been slow (75MW to-date) with market benefits being minimal while exposure to market risks remains high . We have confidence that the WDRM can provide major benefits to the NEM and we are supportive of the AEMC’s draft determination to continue with the WDRM. However, the WDRM needs to be consistent with other two-sided market mechanisms and the risks and benefits for the consumer participating need to be clear and able to be managed.
We do not agree that the WDRM should maintain its current form. The WDRM has failed to achieve its objectives and to not change the approach to achieve better outcomes is not an option.
We are also disappointed that the market bodies have created confusion through overlapping mechanisms, isolated jargon and poor coordination that is written for market participants and not those who the market bodies want to be engaged; consumers, which is a requirement of the NEO….’
Please download attached document to read full submission.
