Nexa Advisory welcomes the opportunity to contribute to DCCEEW’s Solar Sharer Offer (SSO) Consultation Paper.
We support the SSO in principle as a strategic and innovative offering which aligns with government policy and supports broader uptake and equity concerns. Requiring retailers to offer the SSO as a standing offer in DMO jurisdictions provides clear benefit to those least able to take advantage of market offers. However, the implementation must be carefully considered and supported by strong consumer protections to minimise unintended consequences.
However, further reforms are needed to enable innovative consumer energy offerings. Namely, this includes addressing the need for cost-reflective network tariffs and removing the capital expenditure bias of DNSPs.
Summary of key points
- We support in principle the introduction of the SSO as a standing offer in DMO jurisdictions as an equity-enhancing, demand-side oriented reform.
- The SSO design and AER implementation should be carefully considered and supported by strong consumer protections to minimise unintended consequences.
- The SSO design and AER implementation should explicitly linked to cost-reflective network tariff reforms, rather than treated in isolation.
- DCCEEW should progress complementary reforms to DNSP incentive frameworks, including totex-style arrangements and stronger ring-fencing, to ensure CER value is realised through competitive, consumer-led solutions rather than new waves of regulated capex.
- DCCEEW should utilise the SSO to better understand consumer ability and willingness to shift load and feed these lessons into the AEMC’s consumer pricing review and the National CER Roadmap.
Read our submission here: Nexa Advisory submission – DCCEEW Solar Sharer Offer