Technology Collaboration Programme

Task 6 – Mechanisms for promoting DSM and Energy Efficiency in Changing Electricity Businesses

Task 6 – Mechanisms for Promoting DSM and Energy Efficiency in Changing Electricity Businesses


Thirteen countries and the European Commission participated in Task 6, which commenced in 1997 and was completed in 2000. The objective of the Task was to develop mechanisms for promoting the implementation of demand-side management (DSM) and energy efficiency in restructured electricity industries and competitive electricity markets.

Achieved Results

During the Task, 99 existing mechanisms already in use in the countries participating in Task 6 were identified and described. Twenty-five mechanisms were developed in detail and reviewed by practitioners who may be involved in using the mechanisms. The effectiveness of the developed mechanisms was assessed against a range of criteria.

Four types of mechanisms were developed:

  1. Control Mechanisms – these are used to direct energy businesses to change behaviour;
  2. Funding Mechanisms – these provide funding for other mechanisms;
  3. Support Mechanisms – these provide support for behavioural changes by end-users and energy businesses;
  4. Market Mechanisms – these enable the use of market forces to encourage behavioural changes by end-users and electricity businesses.

Task 6 also identified the public policy goals and objectives which governments may seek to achieve through the reform and restructuring of the electricity industry. It analysed how the effectiveness of mechanisms in promoting DSM and energy efficiency is influenced by different structural models for the electricity industry. Effectiveness was judged by analysing the effects of different electricity sector structural models on the mechanisms,and by reviewing the barriers to the implementation of DSM and energy efficiency which were addressed by the mechanisms.

The developed mechanism were subjected to review by a range of relevant practitioners through a series of Practitioners Workshops held in Australia, France and Japan. The purpose of the Practitioners Workshops was to present preliminary summaries of the mechanisms developed in Task 6 for comment by a range of practitioners who may be involved in using the mechanisms.

The Practitioners Workshops were designed to provide a ‘reality check’ on the practicality of the developed mechanisms.

The products from Task 6 constitute a comprehensive catalogue of information on incorporating DSM and energy efficiency into restructured electricity industries. The products will be of immediate practical use to government policy makers, industry regulators, electricity business managers and analysts and commentators on the electricity industry.

The major products from Task 6 comprise:

  • three Task 6 Research Reports.
  • a database of 99 existing mechanisms for promoting DSM and energy efficiency.
  • a database of 25 developed mechanisms for promoting DSM and energy efficiency.


Australia, Belgium, Denmark, EU, Finland, France, Greece, Japan, Korea (South), Netherlands, Norway, Spain, Sweden and the UK.

Task duration: 1997 – 2000