Energy retailers face new consumer rules


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In today's edition:

  • Energy retailers face new consumer protections
  • TransGrid CEO sees light at tunnel’s end
  • $8.7b annual extreme weather bill by 2050

End of the retailer market?

The Australian Energy Market Commission (AEMC) released final rules on consumer protection, responding to requests submitted by Energy Ministers in August 2024, designed to:

  • Limit price increases to once yearly, providing greater certainty for households and businesses
  • Remove unfair fees that disproportionately impact vulnerable customers
  • Eliminate unreasonably high penalties for customers who struggle to pay bills on time
  • Ensure hardship customers can access their retailer's best available deals.

The “improving consumer confidence in retail energy plans” rule change comes into effect on July 1, 2026, and the hardship rule change takes effect from December 30, 2026.

"For the first time, we have formally applied our updated equity guidance across these rule changes, explicitly considering how contract terms, benefits, and fees may disproportionately impact vulnerable consumers." — AEMC Chair Anna Collyer

Expert view

"The AEMC changes, and the review of the DMO, are welcome news. But to make a real difference, there are some fundamentals we need to consider.

One: what role do we expect the DMO to play? Some claim it’s a safety net for consumers who can’t or won’t shop around. Some call it a benchmark to allow for comparison between retailers. Some see its role as acting as a defacto price cap. It’s not doing any of these effectively, but that’s fundamentally because energy ministers haven’t been clear about what problem the DMO is meant to solve.

Two: what is it reasonable to expect of consumers? It should be in consumers’ best interests to shop around, but we should recognise that this costs consumers their time. For many, the time spent disentangling the ins and outs of different plans just isn’t worth the savings, especially if those savings don’t end up being realised because tariffs change.

And three: how much should the DMO process mimic the decisions of a retailer? Currently we’re asking the regulation to imitate market forces, when the two are profoundly different things. A bright line between regulated and unregulated prices would be to the benefit of the AER, the retailers, and ultimately consumers.

Without settling the fundamentals, rule changes and new DMOs will only mean incremental improvements for some consumers rather than a much better experience for all.”

Alison Reeve
Incoming Energy Program Director at The Grattan Institute

TransGrid CEO sees light at tunnel’s end

TransGrid CEO Brett Redman sees light at the end of the tunnel of delays and cost blowouts on multibillion transmission projects, with a key South-Australia-NSW connection nearing completion and a controversial link from the giant Snowy 2.0 pumped hydro storage project to the NSW grid due to soon begin construction.

Redman said planning delays had not been entirely solved but “the frustration of things taking forever” was starting to lift. Works camps for EnergyConnect — the $4.1 billion SA-NSW link — are being pulled down, camps for the $4.9 billion HumeLink Snowy 2.0-NSW link are being built, and the $3.3 billion Marinus Link from Tasmania to Victoria is nearing a final investment decision.

“I still see that we're challenged in the day to day with the sheer bureaucracy of how we get through approvals and how we get things moving. So I think that that's not getting dramatically better despite all the best will in the world. So we've got to keep trying to punch through it,” Redman told the Energy Week conference in Melbourne.

“But I do think we're at the end of the beginning, and we've got some projects at the beginning of the end, and so you start to look into a future where we're reaching a new heightened level of activity, and we're going to start to deliver on [the goals of the energy transition].”

TransGrid is the NSW transmission monopoly.

Catch up

Capital

New Zealand company EnPot has teamed up with Siemens Energy to push its power management technology into China’s aluminium smelters. (BusinessDesk)

The US clean energy sector is facing a wave of collapses as Congress weighs a spending bill that would gut clean energy tax credits that have kept the industry afloat. Two major companies, residential solar provider Sunnova and financing firm Mosaic, filed for bankruptcy this month. (FT)


Projects

EnergyAustralia formed a joint venture with EDF to develop the 385MW Lake Lyell Pumped Hydro Energy Storage project (LLPHES) in Lithgow, after AEMO Services encouraged short lead-time projects to come forward to help meet NSW’s 2030 long-duration storage target. EnergyAustralia will continue to have responsibility for community, neighbour and stakeholder engagement for an Environmental Impact Statement submission in 2025, with Final Investment Decision eyed for late 2026. The gentailer is also developing a $1 billion battery at the site of the Mt Piper coal-fired power plant near Lithgow, which supplies about 15% of the state’s electricity but is intended to shift into more of a back-up role rather than be a continuous source for the NEM leading into a 2040 retirement date.

“We own and operate over 20GWs of hydroelectric assets across the globe and are developing many more GWs. In Australia we are already leading the Dungowan PHES project near Tamworth, NSW, with 300 MWs and ten hours of storage that will support NSW’s energy transition. We will work with EnergyAustralia and all interested stakeholders to ensure that LLPHES becomes a model of sustainable development and a source of real pride for the region.” — EDF Power Solutions Australia CEO James Katsikas

Policy

The UK expanded a Warm Home Discount scheme to bring 2.7 million extra households into its scope, cutting £150 off the coming winter’s energy bills, offset by new efficiency savings across the energy system. The Office of Gas and Electricity Markets (Ofgem) also plans to reduce the overall stock of consumer debt, which is currently recouped via a standing charge on all bills. However, gas and electricity bills are expected to increase from October, reflecting rising oil and gas prices. (BBC) (The Independent)

“These reforms complement the government’s drive to bring down bills in the long term by replacing the UK’s dependence on fossil fuel markets controlled by petrostates and dictators with clean homegrown power.” — UK Department for Energy Security and Net Zero

Spain’s blackout report debunks core claims of the anti-renewables brigade, climate and energy consultant Ketan Joshi explains. (Renew Economy)


Regulation

NT Minister for Lands, Planning and Environment Joshua Burgoyne said during budget estimates the Finocchiaro government would not implement a 2030 emissions target pledged during the election campaign. He said the Territory was a "relatively small emitter" and climate change provided risks and "opportunities" for them. The Environment Centre NT said he also faced questions about why a cornerstone document requiring the Territory’s Environment Protection Authority to assess, consider and regulate climate pollution from industries like fracking, gas prospecting and agriculture had been “quietly removed”. The centre last year put forward an alternative vision for economic growth and energy security, authored by Springmount Advisory’s Tom Quinn.


Technology

Fusion will need breeder blankets and lithium, according to IDTechEx. Their research on a technology that’s “always 30 years away” finds the greatest challenge will be demonstrating the effectiveness of breeder blanket designs but suggests, in the long run, fusion plants deployed at scale could represent a lithium demand on the same order of magnitude as lithium battery and electric vehicle markets.


Climate

The Climate Change Authority warned extreme weather disasters will cost Australians $8.7 billion a year by 2050 without strong action to address climate risks. Disasters such as Cyclone Alfred and record flooding on the NSW Mid-North Coast have cost the Australian economy $2.2 billion in the first half of 2025 alone. The authority’s report calls for governments to reduce the physical risks of climate change by:

  • making the right investments in infrastructure and services
  • ensuring standards, laws and regulations are fit-for-purpose for a changing climate
  • equipping Australians with the information and resources to improve their decision-making.

Record-high greenhouse gas emissions are set to exhaust the planet’s “carbon budget” within three years, passing another ominous milestone that would minimise the chance of limiting warming to 1.5C, scientists have said. (FT)


People

Queensland’s CS Energy announced the appointment of Brian Gillespie as CEO.


Research

Scientists and engineers at UNSW Sydney are using artificial intelligence and machine learning to make their method of producing green ammonia more efficient. They fed in information about how each metal behaves and trained the machine learning system to spot the best combinations. Instead of having to run more than 8,000 experiments in the lab, they only had to run 28 to find the winning catalyst combo of iron, bismuth, nickel, tin and zinc.

“We achieved a sevenfold improvement in the ammonia production rate and at the same time it was close to 100% efficient, meaning almost all of the electrical energy we needed to make the reaction happen was used to make ammonia — very little was wasted.” — UNSW School of Chemistry’s Dr Ali Jalili

Natural hydrogen needs scientific rigor to balance the hype, according to a Royal Society report entitled Natural hydrogen: future energy and resource. Unlike hydrogen made using fossil fuels (blue hydrogen) or renewables (green hydrogen), natural hydrogen forms through chemical reactions in the Earth’s crust. If found in sufficient quantities and safely extracted, some say it could offer a cheaper, lower cost alternative to other sources of hydrogen. Dedicated exploration licenses have already been granted in South Australia and exploration is also underway in Canada, France and the United States.

“This is not a gold rush. As interest grows, we need to make sure evidence stays at the centre of the conversation. We need solid science, good data, and a realistic view of what’s possible to make sure the hype doesn’t run away with itself.” —  Lead author Professor Barbara Sherwood Lollar, University of Toronto

Random

Monash University is under fire for an event at its Italian campus jointly organised with Woodside Energy, as staff criticise the institution for hosting “shadowy conferences paid for by fossil fuel corporations” and a lack of transparency around the relationship. (Guardian)

What's on


June 24-25
Noosa Power & Energy Conference

Climate Change Authority Chair Matt Kean, Grattan Institute Energy and Climate Change Program Director Tony Wood, Windlab Director of Policy Maggie Shelton and Energy Estate Co-founder Simon Currie are speaking at this new Queensland event.


July 17-18
Carbon Capture APAC Summit

Chevron General Manager of Energy Transition David Fallon, Beach Energy CEO Brett Woods, CarbonNet Project Director Jane Burton, Geoscience Director of Offshore Energy Systems Merrie-Ellen Gunning are among speakers at this event in Melbourne.


July 29-30
Australian Clean Energy Summit (ACES) 2025

AEMO CEO Daniel Westerman, AEMC Chair Anna Collyer, Climate Change Authority Chair Matt Kean, AGL CEO Damien Nicks, Iberdrola Australia CEO Ross Rolfe and Squadron Energy CEO Rob Wheals are among the lineup at the Clean Energy Council’s flagship event in Sydney.

The Energy

The Energy is dedicated to covering the business of energy and in particular the people, capital, projects and emerging technology behind the energy transition.

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