A NSW Government website

New incentives to cut peak electricity use

Friday 4 November 2022

04 Nov 2022

Media release: Office of Energy and Climate Change

The NSW Government has kicked off a world-first Peak Demand Reduction Scheme (PDRS) to reduce energy consumption in the peak hours and benefit households and businesses with lower costs and better reliability.

Programs and Market Development Director, Terry Niemeier, said by working with accredited providers across NSW, households and business can now receive a discount on their energy bill for reducing energy demand during peak hours.

“It couldn’t have come at a better time for NSW households and businesses experiencing bill shock over the winter months”, Mr Niemeier said.

“The scheme works by incentivising a reduction in peak consumption between 3:30 pm and 9:30 pm in summer. This is when electricity is most expensive and when we tend to use it most.

“This will help ensure the reliability of the NSW electricity grid and have the welcome bonus of reducing costs for customers who install equipment that uses less energy at peak times.”

“The first stage of the PDRS builds on the successful Energy Savings Scheme (ESS) and will reward those engaging in some existing ESS activities for their additional contribution to reducing energy demand during peak times.

“The first activities available now under the PDRS include the installation and replacement of air conditioners, commercial heat pump water heaters, refrigerated cabinets, ventilation motors, refrigeration motors, pool pumps and the removal of spare fridges and freezers.”

“Annual updates to legislation will include new and innovative technologies to increase our energy savings and reduce peak energy demand,” Mr Niemeier said.

For more information, visit the Peak Demand Reduction Scheme page