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 (EVs), and more traditional assets such as hot water heaters and pool pumps.
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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 and 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.
AEMC 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,” she explains.
“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.”
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.
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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.
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.
