The ultimate outcomes and benefits of the Australian Energy Market Commission’s pricing review will hinge on the implementation design work, according to the peak body for electricity retailers, the Australian Energy Council.
The AEC’s Chief Executive Officer, Louisa Kinnear, said retailers welcomed the extensive consultation that had formed part of the review, but more work was required to ensure that benefits were able to be realised by customers.
“Efforts to reduce complexity and increase transparency for customers are positive. We support creating greater clarity and awareness of savings customers can make as well as improving and developing better comparison tools.
“It is important however, that proposed changes don’t place additional obligations on retailers while also limiting their ability to recover their costs.
“We don’t want to reduce benefits for customers who shop around or the spread of retail offers which would ultimately reduce competition and the incentives to engage with the market.
“We are also supportive of initiatives that make retailers more central and able to deliver simplicity and choice for customers. But it will be critical to ensure retailers can adequately manage supply chain risks.
“Network costs are one of the largest components of a customer bill. Right now, the current regulatory framework does not incentivise networks to fully share the benefits of rooftop solar and batteries with customers. The AEMC’s recommendations do not address this issue and as a result, value for customers is being left on the table,” Ms Kinnear said.
“Stronger obligations on networks requiring them to work with retailers would ensure more value can be shared with customers, particularly those who are investing in their own energy assets.
“Further reforms to network pricing are critical to support retailers in their transition to an energy services market, where energy products can be differentiated based on customer needs, rather than price.
“None of the AEMC’s recommendations work in isolation and we remain concerned that while there are comprehensive reforms proposed, more work needs to be done to align the interests of network businesses with a diverse and evolving customer base. Without further changes, the ability of retailers to offer better value products for customers will be limited.”
About the Australian Energy Council
The Australian Energy Council (AEC) is the peak body for energy retailers and generators operating in competitive markets.
Our members generate and sell energy to over 10 million homes and businesses and are committed to delivering a reliable, affordable and decarbonised energy system for consumers.
The AEC supports net zero by 2050 and recognises the electricity sector’s role in reducing Australia’s emissions. Our members are major investors in renewables, firming and storage technologies that are critical to ensuring customers continue to receive reliable and sustainable energy supply as we navigate the energy transition.
Media contact: Carl Kitchen 0401 691 342
