The peak body for electricity retailers, the Australian Energy Council, said it was disappointed by the Government's lack of consultation on its Solar Sharer announcement.
The Australian Energy Council's Chief Executive Officer, Louisa Kinnear, said "We welcome initiatives that are designed to improve options for customers, but we are disappointed that the Government didn't consult with us ahead of time in announcing this decision. All limbs of Government and other agencies are seeking to cut red tape and improve productivity and this change introduces a complex regulatory solution that delivers a customer outcome that is already being offered by many retailers.
"Today's announcement of a new regulated Solar Sharer Offer was a surprise to the industry and did not form part of the DMO Review consultation process. This lack of consultation risks damaging industry confidence, as well as creating the potential for unintended consequences.
"Electricity retailers have been actively participating in good faith with the Government's DMO Review and had been seeking to support the Government's intent to align the DMO to an efficient price framework.
"We have just spent the past 5 months engaging constructively with the Government on the DMO review, with the industry broadly comfortable with the anticipated review outcomes, but the lack of consultation on today's announcement means the AEC can no longer offer its unqualified support," Ms Kinnear said.
"While it is positive that the Government recognises that customers are benefiting from innovative products our members are offering, failing to consult with the industry prior to making announcements such as this could have an enduring impact on product innovation that can further support the energy transition and customers.
"In developing energy products such as those that offer free energy for a period of time, retailers, and in particular, smaller retailers, need to carefully consider their exposure to the market, their hedging strategy, the impact of network costs, and a range of other factors. These factors are not identical for all retailers, and universal access to a product places material risks on retailers that in some instances might only be mitigated by them exiting a market.
"In particular, it will be critical for the Government to consider changes to network tariffs across all jurisdictions to ensure that retailers can provide the most cost-effective retail price to DMO customers. Without this change, this offering is unlikely to be successful.
"We look forward to seeing the detail of the changes announced today and encourage the Government to engage closely with the AEC and retailers to ensure its final design can deliver positive outcomes for all consumers in a way that limits the potential for unintended consequences," Ms Kinnear said.
About the Australian Energy Council
The Australian Energy Council is the peak industry body for electricity and downstream natural gas businesses operating in the competitive wholesale and retail energy markets. AEC members generate and sell energy to 10 million homes and businesses and are major investors in renewable energy generation. The AEC supports reaching net-zero by 2050 and is committed to delivering the energy transition for the benefit of consumers.
