Australian energy retailers to be directed to offer free power three hours a day by regulators

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1. #Energy retailers to be directed to offer free power three hours a day

   Saying there is enough solar power for everyone in the daytime, Climate Change Minister Chris Bowen will direct retailers to provide three hours of free power every day to consumers.

   The Solar Sharer scheme will require retailers to offer free electricity to households for at least three hours in the middle of the day, when there is often more electricity generated than is being used, leading to very cheap or even negative wholesale prices.

   The free power scheme will initially be introduced to consumers on the default market offer in NSW, south-east Queensland and South Australia from July next year, with consultation to extend the scheme to other jurisdictions by 2027.

   Households with smart meters will be able to run washers and dryers, air conditioning or any other appliances for free within the three-hour window.

   In a statement, Mr Bowen said the scheme would share around the benefits of solar panels, including to those without panels or who rented their homes.

   “Australians deserve a fairer go when it comes to their energy bills. In our second term, we’re getting on with delivering reform to ensure that no household or business pays more than they should,” Mr Bowen said.

   “People who are able to move electricity use into the zero cost power period will benefit directly, whether they have solar panels or not and whether they own or rent, and the more people take up the offer and move their use, the greater the system benefits that lower costs for all electricity users will be.”

   The government said the shift in demand was expected to lower costs for everyone by reducing peak demand in the evening, which would also minimise the need for “costly” network upgrades to ensure grid stability.

   The federal government has been under pressure to address power price concerns, as state and federal rebates come off, and with a recent uptick in inflation as a consequence.

   In May, the Australian Energy Regulator confirmed households on the Default Market Offer (DMO), the maximum price retailers can charge on standing offer contracts, would rise from 0.5 per cent to 9.7 per cent across the country, depending on location.

   The Solar Sharer scheme has been announced as part of a review of how power prices are set through the DMO.

   The federal energy minister will announce changes to how benchmark power prices are set, aimed at cutting back how much energy retailers can hit consumers to cover costs like advertising, on Wednesday.

   The announcement also comes amid turmoil within the Coalition, as it debates whether to keep or dump a commitment to net zero emissions over power price concerns.

   On Sunday, the Nationals ran ahead of the Liberals to announce that they would formally abandon the 2050 net zero target, citing power price rises of 39 per cent since net zero was committed, and arguing a “technology neutral” approach that included more coal and gas would bring down power prices.

   As that announcement was being made, Mr Bowen’s office noted that wholesale energy costs were negative in every state except Tasmania due to solar generation.

   “Free daytime power for families across Australia is proof that what’s good for the planet is good for your pocket,” Mr Bowen said.

2. This is actually a great way to deal with the solar curve, helps load shift demand to peak production times reducing the demand when solar production is lower.

   This also incentivizes installing storage regardless if you have solar panels. If I add home storage and program it to charge from the grid during those 3 hours I can offset my power consumption during more expensive time of day, with a large enough battery I could reduce my power bill to just the basic monthly charge.

   Its programs like this that will help resolve the curve and storage issues through market forces.

3. time to head back home. thanks for sharing!

4. “Wholesale electricity prices in the daytime are often very cheap or even negative due to solar generation producing more supply than there is demand.”

   Is that reflected in retail pricing? I assume it is so that people are already encouraged to charge their EVs when the sun is shining brightest.

   Overall, this seems idiotic to me. Sure there is often a surplus in the middle of the day in summer but not always and it will inevitably distort the market and not in ways that are always desirable. I’m reminded of rent control which is great for existing tenants but discourages landlords from making properties available for rent, further restricting supply and causing rents to increase for everyone wanting to rent for the first time, or to move.

5. What would be more useful is to have dynamic energy pricing. So that electricity is cheap when there is a surplus, regardless of when. And expensive when it is in demand. This is what they start to do in Europe and energy retailers even offer plans adjusted to it. Some even now actually have services where some big loads (like EV charging, water boiler or heating) can be automatically adjusted based on price. My energy meter will be replaced this month with a new model where they support two different load switches. I don’t need it as I already run home assistant to optimize my solar usage, and price based when the sun doesn’t come out in winter.

6. “free” lol 😂
   Australia is going full commie.

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