The Australian Energy Market Commission (AEMC) has released final recommendations from its extensive review of electricity pricing. This encompasses a long-term roadmap aimed at making power bills simpler, fairer and better-suited to the energy system trends, influenced by the continued increase in rooftop solar, batteries and electric vehicle uptake.
The recommendations come as cost-of-living pressures remain a key concern for households and businesses. And so, AEMC argues that Australia’s electricity pricing framework must evolve to reflect the rapid uptake of consumer energy resources.
Australia now has the highest uptake of rooftop solar in the world, with one in four households generating their own electricity. That figure is expected to rise to one in two households by 2040.
A central recommendation of the review is to shift pricing complexity away from consumers and onto retailers and energy service providers. Under the proposed model, households would have access to simpler, easier-to-compare energy plans, while retailers manage the underlying complexity of network tariffs and pricing structures.
Anna Collyer, Chair at AEMC, has seen evidence that consumers have concerns about the complexity and fairness of current electricity pricing arrangements.
“You shouldn’t need to be an energy expert to get a fair deal, and long-standing customers should not pay more than someone who just walked in the door,” Collyer said.
“This review sets out a clear roadmap for change. These are recommendations only, bringing them to life will require further work, consultation and collaboration with consumer representatives, industry and governments over the years ahead.”
The review also recommends reforming how households and small businesses contribute to the shared electricity network, with a greater focus on rewarding solar, battery and electric vehicle owners for the value they provide to the grid.
“Millions of Australians have invested in solar, batteries and electric vehicles. They’re already reshaping our energy system for the better. This review makes sure the pricing system catches up with what they have built, and rewards them properly for it,” Collyer says.
“For consumers with batteries, the reforms create more targeted opportunities to be rewarded for the genuine value they provide to the grid – reducing congestion, easing pressure at peak times, and helping keep costs down for everyone.”
The AEMC is also seeking to address loyalty penalties in the retail market. AEMC plans to do this by introducing a requirement for retailers to notify customers how much they have been paying compared to other offers in market (specifically for those that have been on the same plan for four years or more). Retailers would be required to make all market offers available to existing customers and report the data to the Australian Energy Regulator.
Additional recommendations include developing more sophisticated comparison tools for consumers with solar, batteries and electric vehicles, and introducing regular reviews of pricing rules and consumer protections from 2029 onwards.
The Commission’s modelling, released in April 2026, found the proposed reforms could deliver up to $6 billion in network cost savings over 15 years, reducing household costs by between $40 and $80 per year by 2040.
“Electricity pricing will not change next week or next year. What we recommend changes today, is the direction, and our commitment to getting there together with consumers, industry and governments,” Collyer said.
The AEMC expects any reforms to be introduced gradually through established rule change processes, with implementation commencing around 2030 and continuing over approximately a decade.
For more information about the proposed reforms, visit the AEMC website.
