The Peak Demand Reduction Scheme (PDRS) was established in September 2021 under the Energy Security Safeguard to incentivise activities that reduce peak demand for electricity in NSW households and businesses.

High demand puts significant pressure on the electricity system which can lead to price spikes, or in the worst situations, blackouts. The PDRS encourages consumers and businesses to be more conscious of peak electricity use by creating incentives to undertake activities that can cut their energy usage at peak times during summer.

The scheme will start off by providing incentives to install more efficient appliances like air conditioners and refrigerated cabinets which will use less energy during peak times. It will build to include other activities that either shift energy usage from peak times or provide a demand response, that is, actively controlling appliances during peak times to reduce demand on the electricity network.

How the PDRS fits into the Safeguard

The Energy Security Safeguard (the Safeguard) is part of the NSW Electricity Strategy, the Government’s plan for a reliable, affordable and sustainable electricity future that supports a growing economy.

The Safeguard includes the Energy Savings Scheme (ESS), the Peak Demand Reduction Scheme (PDRS) and the new Renewable Fuel Scheme.

IPART’S role

IPART is responsible for administering and regulating the PDRS.  This includes:

  • assessing applications to be accredited to create certificates from PDRS activities (Accredited Certificate Providers)
  • monitoring compliance of Accredited Certificate Providers
  • managing an online system to record the creation of certificates as well as licencing and compliance functions
  • monitoring compliance of Scheme Participants with their obligations to meet their individual scheme targets

Who else is involved?

NSW Government’s role

The Department of Planning and Environment (the Department) is responsible for developing the policy behind the Safeguard and for the legislation, the legal framework of the schemes.

Contact the Department to:

  • provide feedback on regulatory changes
  • get exemption orders for Scheme Participants
  • suggest changes to the Rules
  • participate in testing and trialling of new methods
  • take part in activities that promote the uptake of the Safeguard
  • find general information about the Safeguard

Auditor Services Panel

Auditors are an integral part of the ESS and PDRS and help ensure the ongoing compliance of Scheme Participants and Accredited Certificate Providers.

Auditors who are currently members of the Audit Services Panel for the Energy Savings Scheme will be able to complete audits under the PDRS, subject to upcoming amendments to the audit services panel agreement. We expect to consult on the proposed amendments to the audit services panel agreement in early 2022.

If you or your company are interested in becoming a member of the Audit Services Panel please refer to our Join the audit panel page for information on how to apply.

PDRS commencement for Accredited Certificate Providers

Application processes are still being finalised, but we anticipate taking expressions of interest from potential Accredited Certificate Providers from April 2022. Accreditation under the PDRS will commence after the Peak Demand Reduction Scheme Rule is gazetted which is likely to occur in the second half of 2022. Businesses can start offering products and services from 1 April 2022 to prepare for the summer. While implementations can occur from 1 April 2022, registration of Peak Reduction Certificates (PRCs) won’t commence until 1 November 2022.

More information on the types of eligible activities under the PDRS will be made available through the Department’s website when the consultation process for developing the PDRS Rule commences. Please visit the Department’s PDRS page for more information on how to get involved in the consultation process.

Scheme commencement for Scheme Participants

Scheme liability for the PDRS is set to commence on 1 November 2022 for the summer of 2022-23. You can view the presentation on the Peak Demand Reduction Scheme given by the Department at our recent Stakeholder Forum. More information on the requirements for Scheme Participants will be provided on our website early in 2022.

Get involved

Both IPART and the Department will engage with stakeholders and provide support to facilitate the launch of this new scheme.

You can register to receive updates from the Department about the PDRS and opportunities to give feedback through their website.

More information

For more information please watch the recording of our 2021 Stakeholder Forum, which includes two presentations on the PDRS: one by the Department introducing the PDRS and one by IPART on our plans to implement it. Further information is available on our PDRS FAQ page, and we will continue to update our website and communicate with stakeholders as further details become available.

Quick links: