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AEMC Proposes Fixed Charges to Rework How Australians Pay for Power

A final pricing review that aims to spread poles-and-wires costs as rooftop solar and batteries cut measured grid use will now enter a formal review to decide next steps.

Overview

  • The Australian Energy Market Commission published a final report on Wednesday proposing a shift from variable, usage-based network charges to fixed network charges to recover poles-and-wires costs.
  • The AEMC said the move is intended to ensure households that cannot afford solar or batteries do not shoulder a growing share of network costs as more homes generate and store their own power.
  • The commission recommended a decade-long, phased implementation starting around 2030 with a grandfathering window for households that install batteries before the change takes effect.
  • Energy Minister Chris Bowen publicly warned against premature reforms and said any change must lower bills for all consumers, prompting further formal consultation with ministers, regulators and industry.
  • The report also calls for much simpler bills and measures to expose 'loyalty taxes' by forcing retailers to show customers how much they pay compared with better offers.