The Energy Security Safeguard
The Energy Security Safeguard is an initiative of the NSW Government to help ensure our energy system is more reliable, affordable and sustainable.
The Energy Security Safeguard is established in the Electricity Supply Act 1995 (Act) and is given effect through the following schemes:
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Energy Savings Scheme The Energy Savings Scheme (ESS) supports energy saving activities for households and businesses across NSW. |
Peak Demand Reduction Scheme The Peak Demand Reduction Scheme (PDRS) supports activities that reduce demand at peak times, including flexible demand response. |
A third scheme - the Renewable Fuel Scheme - has been legislated but is not yet operational.
The role of scheme participants in each scheme
Scheme participants create financial incentives to achieve the targets of each scheme. They do this by meeting their individual targets through the purchase and surrender of certificates representing energy savings under the ESS or peak demand reduction capacity under the PDRS.
The Act requires scheme participants participate
The Act identifies who is required to participate in each scheme. These are known as scheme participants. Scheme participants are identified in the table below, along with the clause in the Act requiring them to participate.
| Energy Savings Scheme | Peak Demand Reduction Scheme |
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| Clause 4 of Schedule 4A to the Act | Clause 83 of Schedule 4A to the Act |
Retailers
A retailer is a person who holds an electricity retailer authorisation issued under the National Energy Retail Law (NSW) 2012.
Direct suppliers
A direct supplier of electricity is a generator or other person specified in clauses 29 and 59C of the Electricity Supply (General) Regulation 2014 who supplies electricity directly to a customer.
Market customers
A market customer is defined under the National Electricity Rules as:
- a customer in relation to the connection points it has classified as market connection points under Chapter 2 of the National Electricity Rules
- an Integrated Resource Provider in relation to the connection points it has classified as market connection points under clause 2.3.4(b) of Chapter 2 of the National Electricity Rules.
Market customers are energy customers that purchase electricity directly from the National Electricity Market.
Scheme participants have obligations
Our Scheme participant obligations page explains scheme participant obligations in detail.
Our role
IPART is the Scheme Administrator and Scheme Regulator of the ESS and PDRS.