We support the Australian Energy Market Commission (AEMC)’s ambition to ensure electricity pricing frameworks are effective, fair, and fit for purpose as the energy system becomes more dynamic and decentralised.
This pricing review is an opportunity to ensure that:
- Retail electricity services are simple and comparable, in the context of an increasingly complex market
- System costs are recovered fairly, noting that cross-subsidies already exist and could grow
- Electricity is affordable for all Australians
As preparation for this submission, we asked Dragoman Consulting to provide advice on how to improve the equity and fairness of network cost recovery as the energy system progresses for residential consumers. The report supports several issues raised in the AEMC’s discussion paper and recommends a shift from consumption-based network charges towards instead relying on fixed charges as the primary mechanism for recovering network costs.
Page last updated:
11 July 2025
