AGL’s Customer Council has published an open letter with recommendations for government, regulators, networks and retailers to ensure consumers remain at the centre of decision making as Australia’s renewable energy transition continues.
AGL said the path to renewing and electrifying Australia’s energy system will involve a rapid increase in the share of renewable energy and broad uptake of consumer energy resources (CER) to replace the current dependence on fossil fuels.
The open letter states that people, equity and fairness must be at the heart of the energy transition.
The letter also said that affordability and cost of living pressures are key concerns for customers.
AGL said the energy transition is also changing the way Australians interact with the energy system through new market operations, technological advancements, and decarbonisation objectives.
These changes present significant opportunities for both customers and businesses to redefine how energy is produced, supplied, consumed, and shared. However, the open letter said it is fundamental that energy consumers are empowered, guided, and protected to maximise benefits from the energy system of the future.
The AGL Customer Council endorses the following short-term actions to ensure all customers receive the full benefits of the energy system:
- Build trust by shaping the right customer supports across the nation
- Develop a plan to standardise assistance available to customers and improve systems to ensure that the customers doing it tough are identified quickly so assistance can be provided in a timely manner
- Fast-track the deployment of new tools and technologies that can unlock potential consumer benefits, for example through the uptake of smart meters, especially for customers experiencing vulnerability
- Backing businesses through guaranteed business supports over the long-term, better government communication and administration of support opportunities, and additional public trials and pilots to identify barriers to energy upgrades
- Continue to build consumer trust through better communication across the industry
The letter also included an update on progress made on the recommendations made in the 2023 open letter.
Recommendation 1: Harmonise state concessions schemes and energy relief grants programs to create a more targeted and unified concessions framework across Australia.
The letter said that while there has been a strong focus on bill relief, there remains opportunities to improve the framework for identifying and assisting customers in need, and opportunity remains to develop a plan to standardise assistance available to customers and improve systems to ensure that the customers doing it most tough are identified quickly so assistance can be provided in a timely manner.
Recommendation 2: Fast-track the roll-out of smart meters across Australia to unlock potential consumer benefits, prioritising customers experiencing vulnerability.
AGL said although the AEMC has progressed work to accelerate smart meter deployment, concerns have been raised with the impacts of tariff reassignment for some customers that occur with the installation of a new meter.
The Customer Council said opportunities to unlock potential consumer benefits through new tools should continue to be fast-tracked, especially for customers experiencing vulnerability. The rollout of smart meters for these customers is one opportunity, but the open letter recommended communications to customers should improve.
The AGL Customer Council said governments, regulators, networks and retailers need to work together to make new technologies and pricing structures (including network tariffs) work for all customers but particularly those experiencing vulnerability.
The open letter calls for governments and regulators to set the right consumer protections, regulated tariff structures, pricing principles, and reassignment principles., and must be applied by networks and retailers, together and collaboratively, to be fair and to amplify consumer agency.
Recommendation 3: Accelerate business energy upgrades including through durable, accessible bonus tax deductions to businesses for items that will improve energy performance permanently, and funding pilots demonstrating best practice in decarbonisation, energy efficiency, and energy cost reductions within different commercial sectors.
AGL Customer Council said the government has provided some welcome assistance for small businesses in the most recent budget, but more durable and scalable solutions are required, including better communication of the availability and utilisation of support opportunities.
The open letter recommended backing businesses through guaranteed supports over the long-term, clear policy directions on fuel-switching, better government communication and administration of support opportunities, and more public trials and pilots to identify barriers to upgrades and improvements.
