This Theme will develop and demonstrate innovative flexible and dynamic pricing to customers to encourage load management to reduce costs. Through trials, regulatory sandpits, testing and customer research, accelerate roll out of dynamic and more cost reflective pricing and control systems. Develop business case for accelerated voluntary adoption of smart meters, driven by attractive dynamic pricing and distributed energy resources (DER).
What’s the industry problem?
Very large untapped potential of flexible pricing to cut average electricity prices and bills has long been recognised, but only minimally tapped. The residential sector has highly variable demand. Meanwhile, generation output is increasingly variable due to the rise of solar and wind power. Nevertheless, flat tariffs are still the most common pricing approach for Australian households. A rapid shift to more flexible and dynamic tariffs is required.
Improved cost reflective pricing, including reducing barriers to smart meter deployment and other supporting strategies to enable cost-reflective pricing. Improved peak load management, reduced costs and improved reliability.
Based on accelerated adopted of flexible pricing by 10% of homes, and a dynamic price elasticity of -0.2, this Theme could facilitate electricity cost savings of more than $250M pa by 2030.