A new report has recommended a dedicated and enduring national body is needed to oversee the coordination of the role of consumer energy resources (CER) in the national energy market (NEM) to help lower electricity prices and energy system costs.
The report, produced by Rennie Advisory for Energy Consumers Australia, outlines ways to increase CER participation in the wholesale market to effectively provide grid services within the NEM.
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These include the need for an independent national body with adequate powers to set targets for CER and coordinate reforms to existing NEM processes that will lower barriers to CER participation.
The report will form part of Energy Consumers Australia’s submission to the ongoing NEM Wholesale Market Settings Review.
“There are significant potential benefits of CER which, with the right market and regulatory settings, would flow to all consumers through lower system costs and cheaper electricity prices,” Energy Consumers Australia CEO Dr Brendan French said.
The report also shows other benefits of CER participation include improved energy security and reduced pressures on vulnerable consumers.
“We must ensure consumers have the support they need to adopt the CER required for a least-cost energy system and address the barriers so that everyone can access and benefit from investing in these products,” Dr French said.
“Maximising the value CER brings to the system will help unlock the greatest benefits for all consumers, including people without the capacity to invest and participate in the market. We need a national body to drive the strategy for this and ensure all consumers benefit.”
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The report also recommends implementing targeted reforms including lowering participation thresholds in line with international markets, and modernising metering and telemetry rules and standards.
The report was compiled with involvement from various stakeholders, including market bodies, DNSPs, specialist CER/demand response aggregators, peak industry bodies, and independent experts.
