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02.Proposals to fix our energy market

Energy Commission publishes blueprint to reduce electricity demand

The Australian Energy Market Commission has announced several draft recommendations to better manage electricity demand. These include:

  • Incentivising big businesses to reduce demand at peak times. This would help reduce demand and costs at peak periods.
  • Gradually introducing prices that vary at different times of the day with appropriate protections for vulnerable consumers.
  • Enabling consumers to have better access to their consumption data and information about their electricity use; and
  • Greater incentives for network companies to reduce peak and overall demand instead of building more poles and wires.

The recommendations will be finalised ahead of 16 November 2012, and then sent to Australia’s state, territory and federal energy ministers for consideration.

Last month, Prime Minister Julia Gillard gave a speech calling for state and federal governments to commit to adopting the review’s final recommendations without delay, pointing towards the final Council of Australian Governments meeting of 2012 as the deadline for action.

A bridge too far

Building more poles and wires to meet peak demand can be likened to building four Sydney Harbour Bridges to cope with traffic at peak time.

For the majority of the time when those three other bridges aren’t being used, you still need to pay to build and maintain them. Currently, around $11 billion worth of infrastructure across the National Electricity Market (all of Australia excluding WA and NT) is only being used for about four days of each year.

What CHOICE wants

CHOICE is calling for the regulation of networks to be changed so that where there are cost-effective alternatives to building more poles and wires, these must be implemented.

You can help Take the Power Back by writing to your state and federal energy ministers and asking them to commit to fixing our broken energy system.


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