In its draft report on NSW electricity distribution pricing from 2004/05, the Independent Pricing and Regulatory Tribunal (the Tribunal) expressed its belief that demand management can play an important role in helping the state’s four Distribution Network Service Providers (DNSPs) to better manage their networks and lower the cost of service provision. In the past, several stakeholders have argued that the way in which distribution pricing is currently regulated creates barriers to demand management. Therefore, in determining the regulatory framework for 2004/05 to 2008/09, the Tribunal is seeking to ensure it provides no regulatory barriers to DNSPs undertaking efficient demand management projects.