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AEMC proposal to improve confidence in retail energy plans and stronger protections for energy consumers experiencing hardship

27 March 2025

The Australian Energy Market Commission (AEMC) today published two draft determinations aimed at enhancing safeguards for energy consumers.

AEMC Chair Anna Collyer said the changes would create a fairer retail energy market for all households, with special consideration for those experiencing vulnerability or hardship.

"The proposed changes will help ensure that Australian households can have greater confidence in their energy plans and that those experiencing financial difficulty receive appropriate support,’’ Ms Collyer said.

The determinations align with our consumer strategic priorities to inform, empower, and protect consumers individually and as a collective.

Better support for hardship customers

The first draft determination responds to a rule change request from Energy Ministers to increase support for people experiencing hardship. The draft rule would ensure that hardship customers are no worse off if they do not take up a better offer from their retailer due to existing barriers they face, while also preventing them from incurring unnecessary debt.

The draft rule places a stronger onus on retailers to assist hardship customers with better offers while giving retailers flexibility in delivering these protections. It also improves the reporting and transparency of hardship offers to assist the Australian Energy Regulator with monitoring and compliance.

"Customers experiencing hardship face unique barriers when engaging with the energy market, including lack of time, stress from ongoing financial pressure, or literacy and language barriers," said Ms Collyer.

‘’Our draft rule acknowledges these challenges and shifts more responsibility to retailers to ensure these customers receive appropriate support."

Improving consumer confidence in retail energy plans

The second draft determination consolidates four rule change requests into one rule change process focused on improving confidence in retail energy plans. The draft rule addresses systemic issues affecting consumers' trust in the energy market.

The draft rule would:

protect customers from paying higher prices for their loyalty by ensuring they pay no more than the standing offer price when their energy plan's benefits expire
remove unreasonably high penalties for not paying bills on time restrict retailers from increasing prices in market retail contracts more than once every 12 months
prohibit fees and charges for vulnerable consumers and limit fees and charges to reasonable costs for all other consumers.

"These changes will provide greater certainty and transparency around what consumers will pay for their energy and when those prices can change," said Ms Collyer.

"By limiting retail energy price increases to once per year, which for most customers would fall in July to align with regular industry updates – we're ensuring Australian households can better predict their energy costs and avoid unexpected price rises throughout the year.’’

These rule changes, submitted by Energy Ministers, have been carefully assessed by the Commission against our statutory objectives, leading us to make more preferable solutions in several areas. Our draft rules reflect an independent, evidence-based approach that balances consumer protections with market efficiency to deliver outcomes that best serve Australian energy consumers in the long term.

The consolidated rule changes respond to findings from the ACCC that customers who do not regularly engage in the retail energy market often pay higher prices, particularly those on legacy plans with large conditional discounts or expired benefit periods.

Applying an equity lens to energy rules

The AEMC has applied its updated decision-making guidance across all four rule change requests, explicitly considering equity and how contract terms, benefits, and fees may disproportionately impact vulnerable consumers.

‘’Our equity guidance proposes that energy equity exists where all consumers can fairly access and benefit from the energy system," Ms Collyer said.

"In practice, this means addressing structural barriers that prevent consumers from accessing benefits and ensuring our decisions don't create or exacerbate vulnerability.

"For example, we found that unreasonable conditional discounts disproportionately affect vulnerable consumers who may struggle to meet payment conditions due to financial constraints. By requiring retailers to apply discounts regardless of whether conditions are met, we're ensuring these customers aren't unfairly penalised."

Our updated guidance reflects our evolved considerations in relation to equity and will make how we consider equity in the AEMC's decision-making process more transparent.

The AEMC is seeking stakeholder feedback on both draft determinations by 8 May 2025.

The new rules, if made, would take effect from 1 July 2026, giving retailers just over 12 months to implement the changes.

For more information, visit our project pages on Assisting hardship customers and Improving consumer confidence in retail energy plans, or learn about our decision-making guidance that incorporates equity.

Media: Jessica Rich 0459 918 964 or media@aemc.gov.au

Energy market gets clear vision: Reform opens door for all to benefit from virtual power plants

19 December 2024

The Australian Energy Market Commission (AEMC) has released a final determination that allows virtual power plants to compete directly with large-scale generators in the energy market, to the benefit of all consumers through significant cost savings, lower emissions, and reduced energy prices.

The reforms create efficiencies by allowing virtual power plants and commercial and industrial demand response and aggregated batteries to compete directly with traditional power stations.

Currently there is no mechanism for the market to predict how these resources will respond to daily price fluctuations.

This gap in market knowledge creates significant operational challenges for the Australian Energy Market Operator (AEMO) and can lead to costly system operations. These problems are growing as the rollout of batteries and electric vehicles gathers pace.

AEMC Chair Anna Collyer said this work represents a pivotal moment in our energy market's evolution.
''This reform is like giving the electricity system a pair of glasses – suddenly, it can see and respond to retailers' and customers' actions that were previously invisible.

''We are enhancing market efficiency by creating new opportunities for both energy suppliers and users to participate in ways that weren't possible before,'' she said.

The reforms create a new ''dispatch mode'' that allows retailers to bid these resources into the wholesale electricity market.

This includes virtual power plants combining household batteries, community batteries, backup generators, and large energy users managing their consumption.

"Whether it's data centres shifting computing load, manufacturers using backup generators, commercial chillers, or household batteries aggregated as virtual power plants, retailers can now bid these resources into our wholesale market," Ms Collyer explained.

The Commission's modelling shows that if these resources participate, it could deliver $834 million in cost savings between 2027 and 2050 through more efficient market operation.

To overcome initial barriers and secure these long-term benefits for consumers, the reforms include a $50 million incentive scheme for early participants.

"This improved visibility will lead to more efficient generation use, lower system costs, and reduced energy prices for all consumers.

''While there are costs to encourage early participation, the long-term benefits for consumers far outweigh these initial investments. It's a win-win that doesn't require changing behaviour, just smarter market operation." Ms Collyer said.

The reform represents the primary focus of the AEMC's work program for integrating consumer energy resources into the wholesale electricity market.

The new framework will take effect from May 2027, with incentives available from April 2026.

Visit the project page for more information and contact details.

Media: Jessica Rich, 0459 918 964, media@aemc.gov.au

AEMC unveils new rules to boost consumer energy resource benefits

15 August 2024

New rules by the Australian Energy Market Commission (AEMC) are set to make it easier for households and businesses to capture value from their consumer energy resources (CER) and exercise greater control over their energy use.

‘CER’ refers to smaller-scale energy resources owned by customers, which can produce, store, or vary how they use energy. There are newer forms of CER such as solar panels, batteries, and electric vehicles, and more traditional assets such as hot water heaters and pool pumps.

Australia’s energy landscape is being transformed by the uptake of these resources and consumers becoming more engaged in the different ways they can use them.

By 2030, it’s predicted at least one in eight households will have a battery or electric vehicle, or both. By 2050, that number is expected to rise to one in four. Around one in six free-standing Australian homes have solar panels, with one in two expected by 2040.

These trends represent an enormous opportunity for Australia’s energy future. CER, along with resources such as neighbourhood batteries, have an important role to play in the power system. They can help reduce overall system costs, improve reliability, and achieve a secure, low-emissions energy supply for all consumers.

The final rules, in response to a request from the Australian Energy Market Operator (AEMO), will introduce the following arrangements.

Large customers will be able to engage multiple energy service providers at their premises more easily, to manage and obtain more value from their CER.
Energy service providers for small and large customers will be able to separate and manage 'flexible' CER (such as EV chargers, batteries) from 'passive' loads (like fridges and lights) in the energy market, leading to more product and service options for consumers.
Market participants will be able to use in-built measurement capability in technology such as EV chargers and smart streetlights, eliminating the need for separate meters.

Chair Anna Collyer says these rules are an important enabler in the context of the National CER Roadmap.

‘’They make a series of incremental changes that, alongside other reforms, will unlock substantial benefits from flexible CER for consumers and the system as a whole. "If these resources are integrated well, the power system will operate more smoothly, and consumers and industry will enjoy the benefits of cheaper supply.

"A range of studies has estimated the net benefit of effective integration and coordination of CER to be up to $6.3 billion by 2040," Ms Collyer said.

This rule change will empower consumers to access new energy products and services, enabling them to maximise value from their flexible CER and better manage their energy use.

It also aims to promote innovation and competition in the electricity retail sector by simplifying the process of separating and unlocking value from CER.

For example, these rules will make it easier for retailers to offer households EV charger products with built-in metering and dedicated tariffs. This means consumers could potentially receive separate billing for their EV charging, distinct from their regular household energy use. If they choose, they could also trade excess energy from their EV back to the grid.

The in-built metering arrangements will also make it easier to deploy public infrastructure such as EV chargers and smart streetlights. Modelling shows this could generate benefits of up to $100 million over two decades, including $16 million attributed to emission reductions.

"We are committed to reforms that pave the way for the innovation required to meet the challenge of integrating CER, knowing that if we do nothing, all consumers will face higher costs," Ms Collyer said.

The AEMC's final determination is part of a broader suite of reforms aimed at supporting the energy transition and unlocking the full potential of CER for the benefit of all consumers.

These reforms are interconnected and wide ranging. They include reviewing pricing structures, speeding up the rollout of smart meters, and improving consumer access to real-time energy data.

''Additionally, we have published draft rules to create greater visibility of price-responsive resources, such as household batteries, to make it easier for them to participate in the market. We think this could help AEMO and networks to operate the system more efficiently, ultimately leading to lower prices and emissions.

"These reforms are crucial pieces of the CER puzzle. They create opportunities for innovation, helping consumers reduce bills and participate more actively in our energy system, while improving grid management and reducing emissions,’’ Ms Collyer concluded.

Visit the project page for more information and contact details.

Media: Jessica Rich, 0459 918 964, media@aemc.gov.au

AEMC launches major review to shape consumer-centric pricing

25 July 2024

The Australian Energy Market Commission (AEMC) today announced a comprehensive review that puts consumers at the heart of future electricity pricing, products, and services.

The Electricity pricing for a consumer-driven future Review will examine how the rapidly evolving energy landscape can best serve all Australians in an era of increasing consumer energy resources (CER).

AEMC Chair Anna Collyer emphasised the importance of this forward-looking initiative.

''As we see more households adopting technologies like solar panels and batteries, it's crucial that our electricity pricing, products, and services evolve to meet changing consumer needs.

''This Review will take a fresh look at how we can deliver the best outcomes for all consumers across the electricity supply chain,'' she said.

The Review comes at a critical time, with studies estimating that effective integration of CER could deliver net benefits of up to $6.3 billion by 2040. Realising these benefits hinges on offering consumers the right mix of products and services.

“Effectively integrating CER resources into the wider energy system will help to reduce overall system costs, improve reliability, and achieve a secure, low-emission energy supply for all consumers.

“The key to achieving these benefits is offering consumers the right products and services, as well as clear information, choice, and appropriate protections,” Ms Collyer explained.

The AEMC's Review will consider market arrangements that provide consumers with a range of appropriate products and services, and prices to suit their needs and preferences. It will also examine the roles of distribution networks and retailers in enabling these offerings and ensuring efficient outcomes.

"We're not just looking at those who have adopted new energy technologies. This Review will consider how to deliver benefits and protections for all consumers, whether or not they have CER at home,'' Ms Collyer said.

The AEMC has released draft terms of reference for the Review and is inviting stakeholder feedback by Thursday, 22 August.

These submissions will inform the final terms of reference, to be published as part of a consultation paper by November 2024.

''We're committed to conducting this Review in an open and collaborative manner. Input from consumers, industry, and other stakeholders will be crucial in shaping a future electricity market that works for everyone."

The AEMC expects to release the final report in early 2026, providing a roadmap for a more consumer-centric, efficient, and sustainable electricity market. Visit the project page for more information and contact details.

Media: Jessica Rich, 0459 918 964, media@aemc.gov.au

Virtual Power Plants to compete with big generators to drive down prices

25 July 2024

The Australian Energy Market Commission (AEMC) has released a draft paper that proposes allowing Virtual Power Plants (VPPs) to compete directly with large-scale generators in the energy market, to the benefit of all consumers through significant cost savings, lower emissions, and reduced energy prices.

The draft determination also extends beyond VPP's to include community batteries, flexible large loads, and other price-responsive small resources such as such as back-up generators, marking a significant shift in Australia's energy landscape.

AEMC Chair Anna Collyer said this work represents a pivotal moment in our energy market's evolution.

''By integrating VPP's and similar resources, we're not just enhancing market efficiency; we're empowering consumers and paving the way for a more sustainable energy future,'' she said.

Currently, there is no mechanism for the market to predict how these resources will respond to daily price fluctuations.

This gap in market knowledge creates significant operational challenges for the Australian Energy Market Operator (AEMO) and could lead to costly system operations.

''Fully integrating these resources will allow energy, security, and reliability services to be provided more efficiently,'' explained Ms Collyer.

''Over time, this integration will reduce the need for large scale generation and storage infrastructure, ultimately decreasing costs and emissions for all consumers.''

Recent modelling indicates that VPP market participation could result in cost savings of $834 million between 2027 and 2050, benefiting all customers through more efficient market operation. This underscores the critical importance of encouraging VPP participation.

The AEMC is therefore calling on governments to recognise these resources officially. Once they participate in dispatch, they will be as technically capable as any other generator and should be eligible for schemes such as the Capacity Investment Scheme.

To encourage broad participation, the draft determination includes a mechanism to provide payments to early entrants. However, recognising that a mechanism in the rules may not be the ideal fit, the AEMC is also calling on the Australian Renewable Energy Agency (ARENA) to consider a trial grant program for early entrants.

Ms Collyer says the reform isn't just about integrating new technology but also about reimagining our approach to energy generation and distribution.

''By incentivising early participants, we're accelerating the transition to a more responsive, efficient, and sustainable energy market," she said.

The draft determination also addresses the current gap in the market knowledge regarding the impact these resources are having on operational forecasting. Under the proposal, AEMO and the Australian Energy Regulator would have new monitoring and reporting functions to provide additional transparency.

This rule change is a key component of a broader reform package aimed at integrating consumer energy resources. It represents the primary focus in the AEMC’s work program for integrating these resources into the wholesale electricity market.

''By making price-responsive behaviour visible, we're allowing the market to operate more efficiently. It's like giving the system a pair of glasses – suddenly, it can see and respond to consumer actions that were previously invisible.

''This improved visibility will lead to more efficient generation use, lower system costs, and potentially reduced energy prices for all consumers. It's a win-win that doesn't require changing behaviour, just smarter market operation,'' Ms Collyer said.

The AEMC invites stakeholders to provide feedback on this draft determination. The consultation period will run until 12 September, with a final determination expected by the end of the year.

Visit the project page for more information and contact details.

Media: Jessica Rich, 0459 918 964, media@aemc.gov.au

Enhancing the Retailer of Last Resort scheme

20 June 2024

The Australian Energy Market Commission (AEMC) has released its final report with 10 recommendations to improve the Retailer of Last Resort (RoLR) scheme, drawing on valuable insights gained by regulatory agencies, market participants, and governments during the energy crisis of 2022, which saw an unprecedented number of retailer failures.

AEMC Chair Anna Collyer said the recommendations would simplify and improve both the RoLR scheme and the gas directions framework, providing market participants with greater certainty and clarity before, during, and after retailer failure events.

‘’The recommendations focus on supporting more timely access to critical information in the event of retailer failures, reducing the cost of such failures for consumers and designated RoLRs, and improving incentives within the RoLR scheme.

‘’These recommendations were informed and shaped through extensive stakeholder consultation over the past two years.

''We believe they will enhance the RoLR scheme as an effective safety net, helping address the risks faced by retailers and consumers when a retailer fails, ultimately supporting better market outcomes and ongoing financial resilience in the retail market," Ms Collyer said.

In the National Electricity Market’s (NEM) competitive retail market, high levels of entry and a dynamic spot market create the risk of retailer failures. As such, retailer failures are likely to occur over time, necessitating efficient and effective exit arrangements that ensure continuity of supply for impacted consumers while minimising costs and systemic risks.

Most of the AEMC’s recommendations involve changes to the National Energy Retail Law (NERL), meaning they must be implemented by jurisdictions.

‘’The AEMC welcomes the opportunity to work constructively with jurisdictions, to progress these recommendations for implementation,’’ said Ms Collyer.

Background:

The RoLR scheme protects consumers by ensuring continuity of supply to a customer if their retailer fails. This framework is supported by a gas directions framework which allows the AER to direct gas supply in the event of a retailer failure.

Between 2012 and 2022, the RoLR scheme had only been used four times, and the AER had never used its gas directions powers. Following the unprecedented number of retailer failures in mid-2022, Energy Ministers sought the AEMC’s expert advice on managing retailer failures and improving market resilience.

A key recommendation supported by Energy Ministers was for the AEMC to initiate this Review to consider improvements to the RoLR scheme. Our final report and 10 recommendations deliver upon this work.

View the project page for more information and contact details.

Media: Jessica Rich, 0459 918 964, media@aemc.gov.au

Unleashing the power of CER for lower bills and a sustainable energy future

29 February 2024

The Australian Energy Market Commission (AEMC) has taken a critical step as part of a broad set of reforms aimed at making it easier for households and businesses to capture the value of their customer energy resources (CER) and exercise greater control over their energy bills.

Australia’s energy landscape is being transformed by the uptake of these resources and consumers becoming more engaged in the different ways they can use them.

The Australian Energy Market Operator’s Integrated System Plan states that by 2030 at least one in eight households will have a battery or electric vehicle, or both. By 2050, that number is expected to rise to one in four. Around one in four free-standing Australian homes have solar panels, with one in two expected by 2040.

Understanding this, the AEMC is prioritising vital reform that aims to unlock the full potential of CER – for the benefit of both the customer who invested in those assets and also for the benefit of all customers through the resulting improvements to the operation of the overall system.

Chair Anna Collyer says investing in these resources empowers consumers to generate, consume, store, and trade energy according to their preferences.

“By using these assets in a smart way, customers can lower their energy bills, and should they choose, share the power they generate or vary their consumption in such a way that it supports the overall grid,” Ms Collyer said.

Positions on how to unlock the benefits of CER were outlined in a draft determination paper, published today. Specifically, the AEMC is considering creating new arrangements for:

‘Flexible’ trading by enabling all customers to have CER separately metered and therefore identified and managed separately from other ‘passive’ consumer loads such as lights and fridges.
Large customers to choose multiple energy service providers for their premises.
An in-built measurement capability in technology such as streetlights and EV chargers to be used instead of additional meters, which allow for the measurement and management of energy use at lower cost.

The key benefits of this rule change could include:

Supporting customers to take up different products and services for their CER which will in turn help them to reduce consumption costs or improve the value they can get from their assets.
Promoting innovation and competition by reducing barriers for market participants to provide wholesale energy, ancillary services, and network services.
Supporting more CER integration by making it easier for those resources to be identified and managed separately, helping to deliver reliability, security, emissions reduction, and reduced costs for all consumers.

This rule change request, submitted by the Australian Energy Market Operator (AEMO), is one of several key CER workstreams the AEMC is focussed on in 2024.

We are looking at ways to create greater visibility of price-responsive resources, such as household batteries, and make it easier for them to participate in the market. We think this could help AEMO and networks to operate the system more efficiently, ultimately leading to lower prices and emissions.

We are also fast tracking rule changes we recommended last year, including a 100 per cent rollout of smart meters. While solar panels provide low-cost energy to their owners and the grid, smart meters at every home could allow non-CER owners to also benefit from the cheap energy provided by these assets.

A government CER taskforce has now been established, following Ms Collyer’s calls for urgent reform last year.

“We at the AEMC are steadfast in our pursuit of pushing reform that’s required to unlock the benefits of these resources, while also mitigating any risk that comes about as a result of the speed and scale of change.

“The key to a successful transition is integrating these resources effectively into the National Electricity Market. Our only choice is to be well prepared. If we do not properly integrate CER into market processes, we face materially higher generation, network, and intervention costs. Consumers have a critical role in the transition – but to do so – they need sound policy decisions from us all,” she said.

Visit the project page for more information and contact details.

Media: Jessica Rich, 0459 918 964, media@aemc.gov.au

AEMC modelling reveals billions in potential savings through integrating virtual power plants

15 February 2024

New modelling results showcased by the Australian Energy Market Commission (AEMC) show substantial cost savings of up to two billion dollars (net present value) between 2025 and 2050. These savings are attributed to the effective integration of price-responsive resources, including virtual power plants, into the National Electricity Market (NEM).

Chair Anna Collyer says the recent analysis is set out in a paper ahead of a public forum for stakeholders next week and follows a rule change request by the Australian Energy Market Operator (AEMO) to improve its ability to forecast electricity supply and demand.

“As more households and businesses invest in newer technologies such as batteries, rooftop solar, electric vehicles, and home energy management systems, these consumer energy resources (CER) will play a vital role in the shift to a net zero energy system.

“Similarly, traditional assets such as hot water heaters and pool pumps will continue to play their part in how the energy system performs and transforms,” Ms Collyer said.

As a result of the rapid uptake of CER, energy companies are increasingly combining these resources to form Virtual Power Plants (VPPs), which are actively responding to price signals in the national electricity market (NEM).

Additionally, there are commercial and industrial resources such as chillers and hydrogen electrolysers, which could be price-responsive and significantly impact the energy market in the future.

Currently, these resources are not fully integrated into the NEM’s planning and operation functions. By making them more visible, AEMO proposes it could more accurately determine how much energy demand needs to be met and how to meet this demand.

It’s of the view that better integration of these resources could lead to more efficient network and wholesale market services, reducing the overall cost of providing reliable electricity to consumers, ultimately leading to lower prices.

New modelling by the AEMC, published today, marks the next step in our exploration of solutions to allow these resources to participate in the wholesale electricity market.

Ms Collyer explained by comparing the anticipated market operations between 2025 and 2050, the modelling explored two potential reform cases against the current scenario, wherein price-responsive resources, such as VPPs, function invisibly within the NEM.

"Positively, the findings revealed a net present value of $1.5 to $1.9 billion dollars in potential cost reductions resulting from the proposed rule change. These cost reductions encompass lower generation costs, lower emissions, reduced emergency supply requirements and a decreased reliance on additional resources to rectify imbalances in the system.

“Furthermore, the integration of these resources is anticipated to significantly increase market competition and put downward pressure on prices", she said.

Modelling indicates the benefits would start to arise as integration occurs and grows, if the rule change is made.

The next step in this rule change request involves a series of detail design decisions, informed by technical working groups and stakeholder engagement. This will inform the AEMC’s formulation of a draft rule and determination, expected to be published in the second half of the year.

The paper will delve into design solutions that not only unlock these benefits but also serve as an incentive for widespread participation.

A public forum on February 19th will offer stakeholders an in-depth overview of the AEMC’s work to date, including the benefits modelling.

Background:

On December 14th, the AEMC published an update paper for the rule change, signalling our commitment to undertaking benefits modelling to provide better insights into where and when the benefits arise.

The AEMC sets the rules for the National Electricity Market (NEM) and provides independent expert energy advice to Australia’s State and Federal Governments. It is strongly focused on providing a framework for a reliable electricity system and affordable electricity prices, particularly in light of current cost of living concerns.

It is currently working on reform that aims to unlock the full potential of consumer energy resources for the benefit of both the customer who invested in those assets and also for the benefit of all customers through the resulting improvements to the operation of the overall system.

View the project page for more information and contact details.

Media: Jessica Rich, 0459 918 964, media@aemc.gov.au.

Extension for Unlocking CER benefits through flexible trading rule change

12 October 2023

The Australian Energy Market Commission (AEMC) is working on reform that aims to unlock the full potential of consumer resources (CER) such as rooftop solar, batteries and electric vehicles for customers who have CER assets as well as customers without.

The AEMC has extended the period of time for making the draft report on the Unlocking CER Benefits through Flexible Trading rule change. This is now expected to be published by 29 February 2024.

The extension will allow more time address feedback raised by stakeholders in response to the directions paper. Further time will also allow the AEMC to coordinate consumer energy resources work streams in a way that offers greater benefits for consumers and the system more broadly.

The AEMC will continue to engage with a range of stakeholders through public forums, meetings, and technical working groups in delivery of a draft rule determination.

Visit the project page for more information and contact details.

Media enquiries: Jessica Rich 0459 918 964 or media@aemc.gov.au

AEMC releases final recommendations to support the integration of household energy devices into the grid

21 September 2023

Customers would benefit from a more secure, reliable and affordable energy system with the development of a national regulatory framework to ensure consumer energy resources (CER) such as solar PV, batteries, pool pumps and hot water heaters comply with mandatory technical standards.

The Australian Energy Market Commission’s recommendation for regulatory reform is one of 11 proposals set out in a final determination published today. The self-initiated review investigated device compliance with technical standards for the national electricity market.

CER plays a critical role in the energy transition. As the rapid uptake of these resources continues, the technical standards defining how devices interact with each other and the power system are increasingly important.

For example, the grid will be more stable with standards that help to reduce instances of devices ‘tripping’, leading to enhanced efficiencies, cost savings and greater certainty for both market participants and consumers.

Despite the importance of technical standards to integrate CER in the power system, significant non-compliance persists. This raises a pressing concern for the operation of the power system which, if not addressed, will be exacerbated as more CER connects.

The AEMC recommends 10 immediate actions by industry, jurisdictions and the market bodies to improve compliance. These actions will support improved compliance over the CER device life cycle by:

simplifying the settings for devices manufactured and sold in Australia
promoting compliant installation
supporting the ongoing compliance of devices connected to the power system.

The AEMC urges stakeholders to implement these immediate recommendations under the existing regulatory framework.

In addition, the AEMC recommends energy ministers lead the development of a national technical governance and compliance framework that will enable the national energy market to integrate high and growing levels of CER.

This may be progressed as part of the National Energy Transformation Partnership and would help ensure a more enduring national framework for CER technical standards.

For more information and contact details visit the project page here.

Media: Jessica Rich | 0459 918 964 | media@aemc.gov.au

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