The Australian Energy Market Commission (AEMC) has published a directions paper for stakeholder consultation that could give Australians more control over their electricity pricing.

The paper outlines the potential for enhanced consumer protections during the accelerated smart meter rollout, including a mandatory three-year consent period for retail tariff changes and requirements for designated retailers to offer flat tariff options.

”These proposed safeguards aim to give customers more control and choice over their energy pricing while still enabling the important rollout of smart meter technology,” AEMC chair Anna Collyer says.

“With the right frameworks in place, an accelerated smart meter rollout will help to ensure all customers see the benefits of a more efficient, lower-cost and decarbonised energy system sooner.”

These proposed safeguards come in response to the draft determination published on 4 April 2024. The directions paper proposes two key additional consumer safeguard measures:

1. A new explicit informed consent requirement – customers would be required to give their explicit informed consent for retailers to change their retail tariff following a smart meter deployment. This right would last for three years after the customer receives the smart meter.
2. A mandatory flat tariff option – certain retailers would be required to make a flat tariff option available to all customers. This measure would be implemented by jurisdictions.

These measures build on protections outlined in the AEMC’s April draft determination which included 30 business days’ notice before retail tariff changes, information to help customers understand new tariffs and historical bill comparisons where available.

Lighting Council of Australia (LCA) chief executive Malcolm Richards says the AEMC ruling to allow more flexible and tailored metering for major electricity users would open the pathway for local councils to deliver the perfect light setting for every environment.

“You don’t want bright lights in your face if you’re in a quiet back street with no cars.  You want them dimmed down to a comfortable level. But on a busy street or in bad weather, you want maximum brightness,” Malcolm says.

“Currently, there is no incentive for councils or other major providers of public spaces to adjust the lights based on local circumstances and needs. This ruling today will allow councils to have smarter, cheaper and better lighting that perfectly meets the needs of their communities.”

The AEMC is inviting stakeholder feedback on the proposals by 12 September 2024. Registrations for a public forum can be made at the AEMC website and will be held on 29 August from 2 to 3pm AEST.

You can register here for a public forum will be held on 29 August from 2 to 3pm AEST.   The project can also be viewed on the AEMC Accelerating Smart Meter Deployment page with more information and contact details.