A new AEMC report on strategic priorities for energy market development highlights the need for all consumers to pay their fair share for electricity network infrastructure.
On the issue of solar households, it acknowledged some of the benefits of solar power – and not just for those who have panels installed.
“As its report noted, some of the direct benefits of solar power include deferring the need for more network investment and reducing losses in the transmission of electricity, which reduce costs for everyone,” said Clean Energy Council Policy Director Russell Marsh.
Mr Marsh said the report was conflicted about the need to better empower consumers to control their power bills, while considering whether consumers who had taken action to reduce mains sourced electricity consumption could be charged extra for using the power grid.
“Cross-subsidisation already occurs across different sections of the energy market. The Productivity Commission has conservatively estimated that running an average-sized air-conditioner costs all customers about $350 per year,” he said.
The Australian Government’s Energy White Paper published last year cited an example of a 2kW air conditioner imposing costs on the energy system – and consequently all consumers – of up to $7000 when adding to peak demand.
“What we need is a balanced approach that doesn’t penalise one class of consumer – particularly when these consumers have responded in good faith to government incentives to install solar power to reduce their energy bills and cut emissions,” said Mr Marsh.
Solar provider Energy Matters also supports electricity pricing reform; but points out solar power systems are not part of the current problems in the system – it is very much part of the solution. Energy Matters sees genuine reform being consistent with the principles listed in an article the company recently published; along with recommended actions.
The AEMC Strategic Priorities for Energy Market Development 2013 can be downloaded here.
