5.2 Recommendation 

Transition to a smart, affordable, reliable future grid by implementing regulatory reforms, introducing incentives for customer participation in energy system management and planning cross-sector integration. 

Proposed sponsor: Department of Industry, Science, Energy and Resources 

Supported by: State and territory energy departments, Australian Energy Market Commission, Australian Energy Regulator

When this should impact:

Where this should impact:

5.2.1 Enable customers to manage their energy bills by incentivising smart meter installation, reforming pricing, and empowering them with the right information and tools. 

Proposed lead: State and territory energy departments

Accelerate smart meter uptake and enable customers to access emerging energy management technologies by subsidising smart meters, where not already mandatory or provided for free by the retailer as part of an electricity plan. 

Proposed lead: State and territory energy departments

Empower customers to harness information from the smart meter to reduce their electricity bills by mandating that retailers accompany smart meter installation with the tools customers need to get the most out of them. 

•  Include free, user-friendly digital and mobile tools that integrate with home energy management systems, give customers transparent real-time access to their energy data, and enable customers to share their data in accordance with the Consumer Data Right for energy. 

•  Retailers and energy agencies should educate customers on the benefits of smart meters and provide support on how to use energy management tools. 

•  Retailers and energy agencies should provide free, timely advice on the benefits of an energy management system at the time of installation and whenever customers switch providers. 

•  Tools and information should be nationally consistent. 

Proposed lead: State and territory energy departments 

Supported by: Australian Energy Regulator

Enable customers to actively participate in the energy system and reduce their long-run costs by agreeing a transition towards default time-of-use tariffs for all customers with smart meters. 

•  State energy departments should mandate that retailers transfer customers with smart meters (including customers who have moved to a premise with a smart meter) to the default time-of-use tariff without any charges, except when the customer opts out or is a vulnerable customer and will be worse off on the time-of-use tariff based on historic consumption patterns. 

•  Retailers and energy agencies should provide free, timely advice on the long-term benefits for all energy users participating more actively in the system whenever customers switch tariff or providers. 

Proposed lead: State and territory energy departments

5.2.2 Enable the orderly uptake of zero-emission vehicles by undertaking national cross-sector coordination planning. 

Proposed lead: Department of Industry, Science, Energy and Resources

Enable the electrification of transport by forming a long-term national planning working group. This should build on the work by the Distributed Energy Integration Program Electric Vehicle Grid Integration Working Group on improving data access and data standards that help allow for effective national planning. 

Proposed lead: Department of Industry, Science, Energy and Resources 

Supported by: Office of Future Transport Technology

Integrate zero-emission vehicles into the grid safely and cost-effectively by developing an electric vehicle integration strategy. 

•  This should build on the work by the Distributed Energy Integration Program Electric Vehicle Taskforces, and include the incorporation of demand management, increasing charging infrastructure visibility and ensuring uptake of smart charging and smart metering. 

Proposed lead: Department of Industry, Science, Energy and Resources 

Supported by: Distributed Energy Integration Program, Energy Networks Australia, Australian Energy Market Operator, Australian Energy Market Commission

Enable the better understanding of locational electric vehicle charging patterns and facilitate efficient distribution grid investment by mandating electric vehicle charging infrastructure be added to the Distributed Energy Resource portal. 

Proposed lead: Australian Energy Market Commission 

Supported by: Australian Energy Market Operator

Secure electric vehicle adoption across the distribution grid and reduce user and taxpayer costs by providing network businesses with limited flexibility to invest in at-risk distribution grids for locations with high electric vehicle uptake. 

Proposed lead: Australian Energy Regulator

5.2.3 Safeguard the reliability and security of electricity supply by implementing electricity transmission reforms. 

Proposed lead: Department of Industry, Science, Energy and Resources 

Supported by: Australian Energy Market Commission

Enable new renewable energy to connect to the grid by implementing the Energy Security Board Renewable Energy Zones reform framework. 

Proposed lead: State and territory energy departments

Ensure transmission interconnector costs are allocated to the beneficiaries and help new generation connect to the grid more efficiently by implementing transmission access reform. 

Proposed lead: Australian Energy Market Commission 

Supported by: Energy Security Board

Fully realise the market opportunity of renewable electricity generation and increase certainty for investors and contractors by implementing the Integrated System Plan and reducing the risk and time for grid connections. 

Proposed lead: Australian Energy Market Operator 

Supported by: Transmission network service providers, state and territory energy departments

5.2.4 Reduce electricity network project delivery timeframes by streamlining the Regulatory Investment Test for Transmission (RIT-T) and Regulatory Investment Test for Distribution (RIT-D). 

Proposed lead: Australian Energy Regulator 

Supported by: Australian Energy Market Commission

Reduce project delivery timeframes and regulatory duplication by exempting planned component upgrades and renewals or projects with unviable non-network options that are included in approved five-year regulated revenue determinations from the Regulatory Investment Tests for transmission and distribution. 

Proposed lead: Australian Energy Market Commission 

Supported by: Australian Energy Regulator

Focus regulatory scrutiny on higher-value projects by reviewing the cost threshold for the Regulatory Investment Tests for transmission and distribution with a view to increasing the threshold to only capture material investment. 

Proposed lead: Australian Energy Regulator