The Clean Energy Council (CEC) has urged the Australian Energy Market Commission (AEMC) to overhaul electricity pricing frameworks.
In its submission to the AEMC’s 2025 Pricing Review, the CEC argues that static network tariffs and outdated regulatory frameworks are impeding the efficient integration of rooftop solar, home batteries, electric vehicles, and emerging technologies into the grid.
“By and large, distribution networks have significant excess capacity, particularly during off-peak periods. However, current network pricing does not generally incentivise the integration of CER in ways that fully utilise this spare capacity,” the submission states.
It recommends shifting tariff design away from end-user classifications towards the load profiles of retailers and aggregators, who are better placed to manage network risks and drive efficient demand response.
“Tariffs must evolve to send clear, actionable price signals to the right market participants, those best placed to respond to them and manage associated risks,” it says.
The Council’s submission identifies rigid billing structures, such as those mandated by the AER’s Better Bills Guideline, as a key barrier to innovation.
It argues these frameworks were developed for a one-way energy model and are unsuited to the complexity of modern, decentralised markets.
The CEC is also critical of duplicative regulation, warning that overlapping consumer protection regimes could stifle innovation and confuse responsibilities.
Instead, it calls for a technology-neutral framework that focuses on risks unique to energy services, without replicating protections already provided by Australian Consumer Law and electrical safety standards.
The submission backs the implementation of flexible exports and dynamic connections to support location- and time-sensitive responses to network constraints.
It proposes reforms to the Regulated Investment Test for Distribution (RIT-D) to encourage non-network solutions, and supports the establishment of Distributed Renewable Energy Zones (DREZs) to coordinate local investment through competitive procurement.
“If we successfully integrate CER into our energy system, we will deliver $22.4b of benefits,” the CEC notes, referencing its Consumer Energy Resources Roadmap.
The submission emphasises that pricing reform must align with the evolving roles of Distribution System Operators (DSOs) and Distribution Market Operators (DMOs), arguing that a coherent, market-driven approach is critical to unlocking the full value of distributed energy.