Solar Citizens recognises the Australian Energy Market Commission's (AEMC)’s Pricing Review Final Report has reconsidered its proposal that would have increased the fixed-charge component of electricity bills, following an unprecedented consumer backlash led by households with rooftop solar and batteries. [1]
More than 2,700 people lodged submissions to the AEMC’s draft proposal, with over 1,600 from Solar Citizens supporters opposing the proposal, which analysis showed would have reduced the financial benefits of rooftop solar and batteries, weakened incentives for energy efficiency, and increased costs for many households regardless of how much electricity they used.
Solar Citizens CEO Heidi Lee Douglas said the response demonstrated that Australians are deeply invested in the future of consumer energy.
"Households have spent more than 25 billion dollars of their own money installing rooftop solar and batteries because they want lower energy bills, greater energy independence and a cleaner energy future," Ms Douglas said.
"They do not want to see energy market rules that undermine those investments or shift more costs onto consumers through higher fixed charges."
The AEMC's report released today acknowledges strong concerns raised by consumers and stakeholders about the impacts of higher fixed charges on households, particularly those investing in consumer energy resources.
Solar Citizens said the outcome was an important step, but that significant work remains to ensure network pricing reforms support rather than penalise consumer participation in the energy system.
"We've shown that when consumers speak, decision-makers listen," Ms Douglas said.
"The challenge now is to design network pricing that works for households, the energy system and the broader community."
Solar Citizens has participated in Energy Consumers Australia's Energy Path Actionable Network Tariff Reform process with Dr Tim Nelson and Phil Horschhorn, bringing the perspective of rooftop solar and battery owners into discussions with networks, consumer advocates and industry experts.
Solar Citizens calls for reforms that:
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Reward households for investing in rooftop solar, batteries and flexible energy use;
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Protect affordability, particularly for low-income households;
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Encourage efficient use of existing energy infrastructure;
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Reduce long-term system costs by making better use of consumer energy resources; and
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Support Australia's transition to a more resilient, decentralised and democratic energy system.
"Australia already has more than four million rooftop solar systems, and more than 430,000 home batteries, plus more than 400,000 electric vehicles which ideally could be used as batteries on wheels. The Australian energy system is increasingly benefiting from households investing in solar, batteries and electric vehicle assets - replacing the need to build large expensive energy infrastructure." Ms Douglas said.
"If we get these rules right, consumers will keep helping to deliver cheaper power, improved energy security and lower emissions. If we get them wrong, we risk discouraging the very investments the energy system needs."
Solar Citizens said it would continue working with consumers, governments, regulators and industry to ensure future reforms strengthen the role of consumer energy resources in Australia's energy transition.