The Market Support Services (“MSS”) Code sets out the minimum standards of performance for the provision of market support services by the Market Support Services Licensee (“MSSL”). The MSS Code also sets out the rights and obligations of a Retail Electricity Licensee, a Generation Licensee, the Transmission Licensee and a contestable consumer with respect to market support services. The Energy Market Authority (“EMA”) continually seeks to enhance competitio nin the electricity market through various market development initiatives to lower costs and give consumers more options to manage their energy cost. For example, the introduction of the Demand Response (“DR”) Programme in April 2016 allows electricity users to reduce their consumption in exchange for a share of the system-wide savings when wholesale electricity market prices arehigh.  

EMA has received feedback on allowing a consumer to appoint an agent to participate in the DR Programme as his appointed DDRA. The appointed DDRA can act on behalf of the consumer to bid the energy reduction from his load facility into the market. The proposed approach is different from the participation in the DR Programme through a third party intermediary, where the DRA or the retailer would typically put in energy reduction bids across a portfolio of their customers.

The proposed approach, the appointed DDRA would need a simpler IT system as compared to that required for a DRA. Consequently it would lower the barriers of entry for participation in the DR Programme, while allowing different business models to evolve. In view of the above, EMA intends to make modifications to the MSS Code to facilitate consumer participation in the DR Programme. EMA therefore seeks comments and feedback on the proposed modifications to the MSS Code as set out in Appendix 1 of the consultation paper.