AEC slams Chris Bowen’s solar share offer, says it risks higher power bills for some Aussies
Energy retailers warn Chris Bowen's plan for free power in the middle of the day could backfire on vulnerable Australians, and see them facing higher bills under the scheme.
Chris Bowen’s surprise plan to make electricity retailers provide at least three hours of free power risks higher bills for renters, the chronically sick and people who don’t work at home, retailers have warned.
Before flying to Brazil for the COP30 conference, the federal Climate Change and Energy Minister blindsided industry with plans to mandate a “solar sharer offer”.
The Australian Energy Council, which represents retailers, has now blasted the SSO in a formal submission to Mr Bowen’s department.
“There is a risk that such a mechanism disproportionately penalises customers opting into the SSO tariff who cannot shift sufficient load, despite their best intentions,” the AEC submission says.
“Whilst this concern will be relevant for all customers opting into the SSO, it may be exacerbated for those less able to change their consumption profiles in the home, such as renters, vulnerable households with medical equipment, or those at work during the day.”
Mr Bowen has said that people who take up the SSO will be able to use the free window to run power-hungry appliances such as airconditioners and pool creepy-crawlies, as well as charge their electric vehicles and home batteries.
However, the AEC’s submissions highlights that renters are unlikely to have a battery in their home and that workers may see little point in running their aircon at lunchtime if they won’t get home until 6pm or later. Also, a person who relies on an oxygen machine would need to have a battery to get any benefit, because they couldn’t consume more in the free power period.
This masthead sent the AEC submission to Mr Bowen’s office on Friday and requested comment.
In response, the office sent previous remarks the Minister made to a Guardian podcast.
“We can do this because we’ve got 4.2 million houses with solar panels on their roofs, and that drives negative prices in the middle of the day a lot of the time,” Mr Bowen said.
“So, with due respect, energy companies aren’t paying for that energy and I don’t think consumers should therefore pay their energy companies.”
The AEC’s submission addresses this claim, describing it as an “oversimplification”.
The council asks that the government compel network companies to have a zero-dollar usage charge for retailers that match up to the free power window. Without that, retailers would have to provide energy to customers for nothing, even though there would still be costs to deliver it.
The AEC is pushing for a “fair use” policy as well, that would put a limit on consumption during the free period.
The Opposition’s spokesman on Energy and Emissions Reduction Dan Tehan said “everything Chris Bowen touches is a complete and utter mess”.
“It is now clear he knew before he proceeded with his three-hour proposal for cheaper power that it would impact negatively on those who can afford it the least,” Mr Tehan said.
Mr Bowen wants solar sharer offers in place across the National Energy Market — which covers NSW, SA and southeast Queensland — from July 1 next year.
The AEC argues that is too soon. It is seeking a start date that is 12 months from the time details are finalised.
The government is yet to make any submission public and many stakeholders are still to provide their feedback.
The AEC provided its submission in response to a request from this masthead.
Since Mr Bowen’s SSO announcement earlier this month, groups including the Clean Energy Council have made comments in support.
But other credible voices, such as Energy Consumers Australia, flagged that the proposal could push up prices outside the free window. It was unavailable to comment on Friday and has yet to complete its submission.
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Originally published as AEC slams Chris Bowen’s solar share offer, says it risks higher power bills for some Aussies
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