The extent of the market inefficiencies has been independently estimated as a cost burden of some $2 billion each year on the Australian electricity consumers. Without the implementation of an effective Demand Management Response this is expected to increase significantly as the demand becomes peakier and supply demand tightens. 

Price Benefits

The Demand Side Response (DSR) strategies that have been developed by Energy Response address many of the major inefficiencies in the electricity market and when implemented will result in lower electricity costs. The cost of using energy for the consumer will be reduced. It will also reduce the cost of energy to business and residential consumers by about 15% pa and much more to those who participate by providing the DSR. Through implementing DSR measures, even for short periods several times per year, electricity consumers will be able to earn substantial rates of income, relative to the cost of electricity for the same period.   Hence, companies that participate in DSR will substantially reduce their electricity costs and will see these savings reflected in their financial reports. Energy Response will be pleased to demonstrate how this can be achieved. DSR pro-actively limits long term increases in electricity prices by deferring costly and inefficient spending on under-utilised supply side capacity – Generators and Networks. 

Reliability Benefits

The reduction of electricity usage by as little as 3 to 5 per cent through implementing Demand Side Response initiatives will have a positive impact on the price and availability of electricity. It will also relieve stress on electricity networks at times of extreme peaks, creating greater supply reliability. Importantly case studies have shown that shifting usage time and reducing demand does not have to mean a loss of productivity or amenity and will not reduce onsite health, safety and security. 

DSR reduces cost of reserve requirements providing improved power system security at a cheaper price.  DSR also removes some of the peakiness in energy production which then allows generators to provide more constant flows and increase efficiency.  DSR also removes the peakiness in transmission which greatly reduces transmission losses and less generation to make up for the losses.