Consumers are no longer passive recipients of electricity supplied through a one-way system. Households and businesses are investing their own capital in rooftop solar, batteries, electric vehicles, smart appliances and flexible demand. These investments are becoming an essential part of the energy system and are already helping to generate, store and shift electricity, manage peak demand and support reliability.
This change in the role of consumers is why the current economic regulatory framework is no longer fit for purpose without substantial reform. It was designed principally for a centralised, one-way system in which networks built assets and consumers paid to use them. It is not yet equipped to value millions of consumer-owned assets, procure their capabilities efficiently, or manage the conflicts that arise when regulated monopolies seek to expand into services that competitive markets can provide.
Nexa’s submission focuses on three issues:
- ensuring the regulatory framework does not disadvantage efficient non-network solutions;
- establishing a clear and disciplined framework for the DSO role; and
- making transmission delivery fit for purpose for the energy transition.
Our submission recommends a suite of potential reforms for the AEMC to address the particular issues raised.
Read our full submission here: Nexa Advisory Submission AEMC Package 2 Review