Australia’s peak renewable energy body, the Smart Energy Council, is calling for a pause to proposed electricity pricing changes, warning new modelling raises serious concerns for households and the energy transition.
The Australian Energy Market Commission (AEMC) today released modelling on proposed changes to network tariffs, including increases to fixed charges. Smart Energy Council Acting CEO David McElrea said the modelling creates more questions than answers, but clearly shows many Australians will be worse off.
“The modelling shows that people who have invested in solar and batteries will be penalised, and so will low-income households,” Mr McElrea said.
“Households that use the least electricity – often renters, pensioners, and people already under pressure – are the ones most at risk of higher bills.”
Mr McElrea said the proposal relies on assumptions that do not reflect how the market actually works.
“The AEMC is assuming that retailers won’t pass on higher network costs, but there is no real-world evidence to support that,” he said.
“Network costs make up a large share of power bills. If they go up, consumers will pay. The AEMC is assuming more Australians will invest in solar and batteries,” he said.
“But at the same time, it is proposing changes that make those investments less attractive.”
Mr McElrea said the proposal risks undermining investment in solar and batteries at a critical time.
“Every solar panel and battery installed is an investment in Australia’s energy independence,” he said.
“These reforms send the wrong signal by penalising households that have done the right thing.”
The Smart Energy Council is urging the AEMC to pause the proposal and commit to further work.
“We recognise the AEMC has been engaging on this issue, and that should continue,” Mr McElrea said.
“But there needs to be a clear public commitment to press pause before any rule change proceeds.”
“We need pricing reform that encourages more people to adopt solar and batteries – including those in apartments and rentals – not a system that punishes them.”
Mr McElrea said the sector stands ready to work with regulators on better solutions.
“The industry is ready to help design pricing that spreads the benefits of cheaper, cleaner energy to as many Australians as possible,” he said.
“This transition is already delivering results. It is lowering bills, grid demand, easing cost-of-living pressure, and giving Australians more control over their energy.”
“We should be building on that success, not putting it at risk.”
