The Australian Energy Regulator (AER) has released the final advice that has been provided to Energy Ministers following its Review of consumer protections for future energy services. The final advice is the culmination of rigorous risk analysis, research and extensive stakeholder consultation.
It presents the case for reforming the National Energy Customer Framework to ensure it can continue to adequately protect consumers in an evolving energy market, supporting the energy transition. New energy services such as virtual power plants, aggregation services and home energy management services are being increasingly intertwined with the essential services consumers rely on.
New energy services will also become increasingly important in supporting the grid through the energy transition, reducing the costs of supplying electricity to all consumers and driving down emissions.
The AER’s view is that, unless there is some regulatory reform to enhance protections, there is the risk of harm to consumers. Effective consumer protections would also support the wider uptake of these new services, driving further innovation and realising the significant benefits that they bring to the transition.
Energy Ministers have agreed to develop a National Consumer Energy Resources Roadmap – Powering Decarbonised Homes and Communities. The AER’s advice provides ideas for ministers to consider as part of this Roadmap. This is crucial to ensuring that consumers can benefit from innovation in the sector while being protected in their use of essential services.
Background
The AER’s review is a deliverable under the Energy Security Board’s Consumer Energy Resources Implementation Plan which aims to effectively integrate consumer energy resources, such as rooftop solar and batteries, into the National Electricity Market.
In mid-2021, as part of its final advice to energy ministers about reforms to the National Electricity Market to meet the needs of the transition up to and beyond 2025, the Energy Security Board recommended that this review be undertaken by the AER. In October 2021, National Cabinet endorsed the final reform package and corresponding Energy Security Board recommendations.
The AER’s final advice to energy ministers has been informed by extensive stakeholder consultation with consumer groups and industry participants.