On 26 August 2022 the AER published an exploratory paper on Network tariffs for the distributed energy future, written by Argyle Consulting and Endgame Economics, and invites your comment on the challenges and possible pathways presented in the paper.

This paper is intended to stimulate discussion on the future direction of network tariffs for batteries, in the context of ongoing tariff reform. It explores the challenges and opportunities that batteries provide for networks and individuals.

We commissioned this work following the AEMC’s 2021 Access, pricing and incentive arrangements for distributed energy resources determination. This determination opened up new opportunities to support the growth of grid scale and community batteries, as well as consumer energy resources, by enabling distribution networks to introduce two-way tariffs, i.e. removing the prohibition on tariffs for the export of electricity by consumers. As the electricity sector transforms to these changes, we are interested to hear opinions on how distributors might develop and deliver network tariffs that support the growth of and realise the full benefits of batteries.

The AER plans to publish comments received, alongside this paper, to further support discussion of the issues covered in the paper.

We invited stakeholders, energy consumers and other interested parties to make submissions on the exploratory paper by close of business, Friday 7 October 2022.

We received eight submissions in response to the exploratory paper on Network tariffs for the distributed energy future from AGL, Ausgrid, the Australian Energy Council, Energy Queensland, Public Interest Advocacy Centre, Red and Lumo Energy, SA Power Networks, and Simply Energy. We thank those stakeholders for their submissions.

To support discussion of the issues covered in the exploratory paper, we have summarised the responses we received from stakeholders in this summary paper.