Managing network demand

Electricity is essential to everyday life. From heating and cooling our homes to charging devices and cooking meals, we rely on a steady, reliable supply. As more homes use solar panels, batteries and electric vehicles, the way we use electricity is changing. Managing electricity demand helps ensure the network stays reliable, affordable and ready for the future.

What is electricity demand?

Electricity demand is how much power households and businesses are using at a particular time.

Demand changes throughout the day. It is often highest in the early evening, when people arrive home, switch on appliances, and use heating or cooling.

These short periods of high demand—called peak demand—can put the most pressure on the local electricity network. You can find out more about peak demand in 'Demystifying your electricity costs'.

Managing electricity demand helps improve utilisation of the existing network, support fair and equitable access to electricity infrastructure, and reduce costs for customers, while enabling a more reliable and sustainable energy system.

For households and businesses, it helps:

• Maintain reliable power during peak periods
• Support the growth of renewable energy
• Keep electricity costs as low as possible over time

As energy use continues to evolve, demand management will play an important role in delivering a safe, secure and future ready network through improved reliability, resilience, and peak demand management.

What is demand management?

Demand management is about reducing or shifting electricity use to ease pressure on the network.

Instead of always building new poles, wires or substations, demand management looks at smarter ways to balance electricity use and make better use of existing network infrastructure.

This can include:

• Using electricity at different times of the day
• Improving energy efficiency in homes
• Generating and storing energy locally (such as rooftop solar and batteries)

Demand management can be a more cost‑effective way to meet growing energy needs while helping keep electricity affordable.

Why is managing demand important?

Electricity networks need to stay balanced at all times. This means supply and demand must match in real time.

When demand is too high or fluctuates quickly, it can place stress on the network.

Managing demand helps:

• Keep the power reliable – reducing the risk of outages and network constraints
• Support grid stability – maintaining safe voltage levels and system performance
• Improve network utilisation – making better use of existing infrastructure
• Avoid unnecessary upgrades – helping reduce long‑term costs for customers
• Support the energy transition – enabling more renewable energy use and electrification
• Enable fairer access to capacity – helping connect more customers and technologies efficiently

A stable network ensures electricity is available when you need it, even during high‑demand periods or unexpected events.

What affects demand and grid stability?

Several factors influence how electricity demand changes across the network:

1. Daily household behaviour
   Electricity use tends to rise in the morning and evening, and drop during the day.
2. Weather and seasons
   Hot days can drive high demand due to air conditioning, while cold weather increases heating use.
3. Solar energy and renewables
   Rooftop solar generates electricity during the day, but demand often rises later in the evening when solar output drops.
4. New technologies in the home
   Electric vehicles, batteries and electric heating systems are increasing overall demand, while also creating opportunities to use energy more flexibly. 

How we manage electricity demand across our network

Demand pricing

We consider demand management as part of how we plan and operate the network.
We look at a mix of solutions to meet demand, including both: Network upgrades, such as new equipment and Non‑network solutions, like demand management and energy efficiency

Some of our demand management initiatives include:

• Demand tariffs that encourage the use of electricity outside peak periods
• Project Edith - a end-to-end dynamic network pricing service
• Shifting load to other areas of the network
• Hot water load control trials
• Co-generation (and standby)
• Solar PV and solar hot installation
• Lighting efficiency programs

By finding the right balance, we can deliver reliable electricity at the lowest long‑term cost for customers.

Demand Management Initiatives

Demand Management Innovation Allowance Mechanism (DMIAM) program

We are continually exploring new and innovative ways to manage electricity demand and reduce pressure on the network.

Our research and trials are delivered through the Demand Management Innovation Mechanism (DMIAM) program, funded by the Australian Energy Regulator (AER). The program supports electricity networks to test new technologies and smarter approaches that can reduce or shift electricity demand, helping defer or avoid network upgrades where possible.

Through the DMIAM program, we trial non‑network solutions such as: shifting energy use away from peak periods, energy efficiency, supporting minimum demand management, reducing renewable energy curtailment and testing new technologies like solar, batteries, electric vehicles, heat pumps and other flexible solutions.

These projects help us identify smarter, more cost-effective ways to deliver safe, reliable, and sustainable electricity services, while making better use of existing infrastructure and helping keep long-term costs down for customers.

Demand Management Incentive Scheme (DMIS) program

While the DMIAM program focuses on innovation, research, and trialling new approaches, the Demand Management Incentive Scheme (DMIS) focuses on the practical implementation of non-network solutions that deliver value to both customers and the electricity network.

Instead of relying solely on traditional network upgrades such as new poles, wires, or substations, the scheme encourages smarter ways to manage electricity demand by reducing or shifting energy use during peak periods. This can include technologies and services such as batteries, electric vehicles, smart energy systems, flexible demand programs, and customer-led energy solutions.

By enabling innovative and cost-effective alternatives, the DMIS helps improve network utilisation, maintain reliability, support the energy transition, and reduce long-term costs for customers.