The Australian Energy Market Commission (AEMC) has released a consultation paper as part of its plan to design a pricing framework that better serves energy consumers.
The AEMC said that just as ride-sharing apps fundamentally transformed transport services, rapid technological change is reshaping how Australians use and pay for electricity. With solar panels, batteries, electric vehicles and neighbourhood batteries becoming commonplace, the AEMC is examining how electricity pricing needs to evolve.
AEMC Chair, Anna Collyer, said the review comes at a critical time as millions of Australian households and businesses embrace new energy technologies known as consumer energy resources.
“With one in four Australian homes now having solar panels, and predictions of one in two by 2040, we need to ensure our pricing frameworks keep pace with how consumers want to use and interact with the energy system.
“Research shows that effectively integrating consumer energy resources could deliver net benefits of $6.3 billion by 2040. Getting pricing structures right will be crucial to realising these benefits for all consumers,” Ms Collyer said.
AEMC has published a final terms of reference, which spells out the key areas of focus for the review, including:
- Market arrangements that provide for consumer choice between a range of appropriate pricing structures, products and services that suit their needs and preferences
- The role of distribution networks in enabling the right incentives, products and services for consumers, and the efficient cost and pricing outcomes that result
- The role of retailers and energy service providers in effectively packaging and pricing electricity products and services to match consumer preferences
Ms Collyer said that the AEMC is taking a future-focused approach in this review.
“While our current frameworks have served us well, we need to think beyond incremental changes to capture the opportunities that lie ahead.
“Just as consumers now expect seamless digital experiences in other sectors, we want to understand what similar transformations might be coming for energy services, both here and overseas,” she said.
The AEMC has established an Advisory Group and Stakeholder Reference Group to provide ongoing input throughout the review.
Stakeholder submissions to the Consultation Paper are due by 12 December 2024. The AEMC will host a public forum on the consultation paper, for which the commission said registration details will announced in the coming weeks.
The AEMC expects to publish a directions paper in April 2025, followed by a draft report in September 2025 and a final report in March 2026.
