Without the magnitude of the DR caused by the DRM it is impossible to assess the impact of the DRM on network costs (or revenue). It is worth noting however, that high price events in Tasmania are primarily driven by Hydro Tasmania’s bidding behaviour. There is likely to be a slightly greater likelihood of prices being higher in Tasmania when the Victorian price is high. This is likely to be in the summer, all other things being equal. To the extent that the DRM results in summertime deployment of DR in Tasmania, the impact on Tasmanian network capacity requirements will be minimal as the Tasmanian networks experience their peak demand in the winter. ACT A separate analysis of the impact on the ACT was not undertaken as it is defined as part of the NSW NEM region.
Without the magnitude of the DR caused by the DRM it is impossible to assess the impact of the DRM on network costs (or revenue). It is worth noting however, that high price events in Tasmania are primarily driven by Hydro Tasmania’s bidding behaviour. There is likely to be a slightly greater likelihood of prices being higher in Tasmania when the Victorian price is high. This is likely to be in the summer, all other things being equal. To the extent that the DRM results in summertime deployment of DR in Tasmania, the impact on Tasmanian network capacity requirements will be minimal as the Tasmanian networks experience their peak demand in the winter. ACT A separate analysis of the impact on the ACT was not undertaken as it is defined as part of the NSW NEM region.
DRM-CBA-final-report-Dec-2014.docx