“We welcome the Australian Energy Market Commission’s (AEMC) proposals to reform network tariffs,” Brian Spak, Energy Consumers Australia (ECA) General Manager, Advocacy and Policy, said.
“The current approach to setting network tariffs – the regulated prices set by networks to recover their costs – is no longer fit for purpose. The current tariff system was largely designed when electricity was a simple, one-directional service. Current network tariffs send exaggerated price signals that do not reflect the true nature of network costs.
“The recommendations proposed by the AEMC are a critical step forward that better reflect the two-way nature of Australia’s energy system. The changes recommended by the AEMC would result in reforms that are broadly beneficial to different types of consumers – including those with solar and batteries and those electrifying. They would send more accurate price signals to retailers and consumer devices like batteries, helping them get paid for the value they bring to the entire energy system. The reforms would also help households without the ability or means to purchase a battery or solar by ensuring that all consumers pay for the impacts they place on the grid and no more.
“It is critical, however, that vulnerable low-consumption households receive additional protection via differentiated standing charges.
“ECA has been engaging closely with diverse stakeholders from across the energy sector on this important issue. We have built a strong body of evidence to support a re-design of network tariffs in an equitable manner for all consumers. The next steps for us to support the AEMC’s important work will likely be submitting a rule change request to make network tariffs work for Australia’s modern, two-way electricity grid.”
For interview requests or more information, contact Stuart Turner on 0415 403 208 or email.
About Energy Consumers Australia
Energy Consumers Australia is the independent, national voice for residential and small business energy consumers. We enable residential and small business energy consumers to have their voices heard.
Click here to read ECA's joint media release on the loyalty tax in the Pricing Review.
