Regulation Impact Statement Updates

Official website for publishing regulatory impact analysis information for regulatory decisions announced by the Australian Government, COAG and COAG Councils.

Mandating ‘Smart Appliance’ Interfaces for Air Conditioners, Water Heaters and Other Appliances – COAG Consultation Regulation Impact Statement – Select Council on Climate Change

11th April 2013

On 22 March 2013, the Equipment Energy Efficiency Committee released a Consultation Regulation Impact Statement (RIS) which examines a proposal to mandate the inclusion of ‘smart appliance’ interfaces in air conditioners, pool pumps, water heaters and electric vehicle chargers.

Along with other policy initiatives, this proposal aims to tackle the broader problem of peak electricity demand, and the significant network investment that is required to meet this (occasional) demand—investment that is passed onto consumers via electricity bills.

More specifically, the mandatory option in the RIS proposes that certain household appliances which contribute to peak demand are fitted with a device—a demand response interface—that can be remotely controlled by an electricity provider. At certain times of the year, such as on very hot summer days when electricity demand peaks, electricity providers can, with the prior approval of households, reduce the energy use of these appliances. This ‘direct load control’ approach takes pressure off the electricity supply network and can help to defer costly network investment.

The public consultation process for this proposal runs for around six weeks and includes meetings in five cities. Submissions close on Friday 3 May 2013. Following the public consultation process, a Decision RIS will be prepared.

The Consultation RIS was prepared by the Department of Climate Change and Energy Efficiency and was assessed as adequate by the Office of Best Practice Regulation.

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