Electricity retailers have criticised a federal plan to mandate three hours of free daytime power for households, saying the Albanese government failed to consult industry before unveiling the proposal.
Under broad changes to the Default Market Offer (DMO), retailers would be required to provide a no-cost supply window around midday, when demand is lower and solar output is strongest. Branded the “Solar Sharer” offer, the scheme is designed to shift household consumption into the free three-hour period and will require customers to have smart meters. An initial rollout is slated for New South Wales, South-East Queensland and South Australia from July next year.
Energy Minister Chris Bowen said the reforms show “what’s good for the planet is good for your pocket.” But the Australian Energy Council (AEC), which represents major retailers, said the move blindsided the sector.
“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,” AEC chief executive Louisa Kinnear said. She added that while governments are seeking to cut red tape, the change “introduces a complex regulatory solution” and targets outcomes “already being offered by many retailers.”
Kinnear said retailers had worked with the government for five months on the DMO review and were broadly comfortable with expected outcomes, but the lack of consultation meant the AEC could no longer offer “unqualified support.”
Some retailers already advertise plans with a free three-hour daytime window offset by higher peak tariffs. The government said the Australian Energy Regulator will oversee Solar Sharer offers to ensure customers “also get a fair deal outside of the free power period.”