Energy Ministers have published the National Consumer Energy Resources (CER) Roadmap, which sets out an overarching vision and plan to unlock CER at scale across Australia.
Announced at the Energy and Climate Change Ministerial Council’s meeting, the roadmap’s implementation plan outlines priority reforms through four workstreams: consumers, technology, markets and power system operations.
The roadmap aims to provide a national approach to reforms to ensure that Australians are able to harness the full potential of CER. If consumer resources are coordinated effectively, they can help lower costs for all consumers by offsetting the need for billions of dollars in grid-scale investment.
The Energy Ministers agreed to the development of the roadmap in November 2023. It was produced by the CER Working Group, made up of state and territory government officials.
Victorian Minister for Energy and Resouces, Lily D’Ambrosio, said, “I’m absolutely delighted to be host of the Energy and Climate Change Ministers here in Melbourne.
“We’ve had a fantastic day of great engagement but also, importantly, the decision-making that will transform and take us to the end of the transition that is underway. We know what needs to be done. It’s about getting on and getting it done. And today spoke volumes about key decisions that have been made to that effect.”
Ms D’Ambrosio said that the journey towards electrification of households is critical, particularly in Victoria.
“It’s a cost-of-living matter. We know that the more Victorians who opt to go to all electric in their home will save significant dollars every year off their energy bills. And our point is that with the Consumer Energy Roadmap this will enable us to drive that work further and drive those benefits further for Victorians as we electrify.
“We know that there are triple benefits for Victorians in terms of electrification. We know that a new all-electric home can save a consumer in that new all-electric home a thousand dollars off their energy bills every year. And if they’ve got solar, it’s $2,200 off their energy bills every year. Those on an existing home, if they go all electric, they can save $1,700 a year on their energy bills and $2,700 off their energy bills every year. These are significant dollar savings.”
Ms D’Ambrosio said that transformation is not just about the big assets that are vital to improve the energy system and decarbonisation, but it’s also about what happens in the home and in the workplace.
“The Consumer Energy Reform package, the roadmap today, is a fantastic step towards this important work to facilitate the uptake of new technologies in the home, giving power back to consumers. Money is better in their pocket and not in the pocket of retailers.”
Federal Minister for Climate Change and Energy, Chris Bowen, said that the roadmap is the next big reform for the energy system, making sure that those consumers who have energy resources at their disposal – whether it be solar panels, a battery, or an electric vehicle – are able to be in control of their resources to get the maximum benefit from it for themselves and also for the grid.
“This roadmap is a very important roadmap for Australia’s future, for Australia’s energy consumers.
“Consumer energy resources are energy resources that need to be deployed in the best interests of every single Australian.”
Industry response
Energy Consumers Australia’s CEO, Brendan French, congratulated the Energy Ministers on the commitments made to support Australian households and small businesses.
“We were happy to work closely with commonwealth, state and territory officials to develop this package of reforms which will help address longstanding problems in the energy market that affect many consumers, particularly those in vulnerable circumstances.”
Mr French said that the new measures will limit the capacity for energy retailers to take advantage of the multiple barriers people face.
“We’re hopeful that once implemented, the reforms will stop consumers being blindsided by unnecessarily high bills caused by unexpected fees and charges, and prices changing soon after they sign contracts. We’re particularly pleased to see that consumers in hardship programs will benefit from the lowest price offered by their retailer and that, at the end of a contract, customers will be moved to the regulated price if that’s lower than the price they’re paying.
“We hope all of these changes will be implemented as a priority to help Australians reduce their bills at a time when more and more people are struggling.”
Mr French said that according to Energy Consumers Australia June 2024 Energy Consumer Sentiment Survey, half of Australian households were more concerned about their ability to pay their energy bills than they were a year ago and that energy was one of the top three bills that worried them.
“Maintaining consumer trust in the energy transition was a welcome theme in today’s discussions. Consumers who understand the transition are more confident to take action, so we were very pleased to see the emphasis placed by Ministers on bringing consumers on the journey.
“Energy Consumers Australia looks forward to working with Ministers to progress these and other essential reforms.”
Image credit: Halfpoint/Shutterstock.com.
