The Premier has asked the Independent Pricing and Regulatory Tribunal to undertake an inquiry into what role Demand Management should play in providing the State’s energy services. This paper is an input to the Inquiry and provides some background for considering Societal Demand Management mechanisms that may be appropriate to implement in New South Wales. The Tribunal has employed the services of Dr David Crossley of Energy Futures Australia Pty Ltd to prepare the paper.

The paper brings together information about a number of mechanisms that promote societal demand management, drawing on experiences overseas and across Australia. It includes analysis of the advantages and disadvantages of the various types of mechanisms. It recognises that some programmes have already been implemented in New South Wales and proposes broad recommendations for continued and enhanced use of demand management options. Areas for further investigation are also identified.