Australians could soon have more control over their electricity pricing under new proposals aimed at protecting consumers during a nationwide smart meter rollout.
The Australian Energy Market Commission (AEMC) today published a directions paper for stakeholder consultation. 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 come in response to the draft determination published on 4 April 2024.
While a broad range of stakeholders acknowledged the critical role smart meters will play in the future energy system, they also highlighted the importance of addressing potential customer impacts following smart meter installations, particularly regarding retail tariff variations.
AEMC Chair Anna Collyer emphasised that we have heard the community's concerns about unexpected tariff changes.
''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.
“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,'' she said.
The directions paper proposes two key additional consumer safeguard measures:
- 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.
- 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 new 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.
"We're seeking to strike a balance between enabling the rollout of this important technology and ensuring strong consumer protections are in place. Social licence is critical for realising the full benefits of smart meters," she said.
The AEMC is inviting stakeholder feedback on the proposals by 12 September 2024. You can register here for a public forum will be held on 29 August from 2-3pm AEST.
View the project page for more information and contact details.
Media: Jessica Rich, 0459 918 964, media@aemc.gov.au