Big electricity users get paid to cut energy


Find out how you could benefit.

Big users of electricity, such as retailers and smelters, will be paid for reducing their power demands and regulators are working to expand it to other power consumers.

This means the wholesale market can pay big users for cutting electricity consumption, rather than paying electricity generators to boost supply, when the electricity network is under pressure.

It begins later next year despite opposition from big energy generators and retailers. The Australian Energy Market Commission (AEMC) says it will improve reliability on the network by allowing demand response to compete with 'peaking' electricity generators that typically receive very high prices for supplying additional electricity during times of heavy demand.

The impact


The potential savings to producers could put downward pressure on retail prices and the AEMC says it is looking at extending the payback scheme to smaller consumes at a later date.

The Australian Competition and Consumer Commission (ACCC) welcomes the change.

In a submission to the AEMC, chairman Rod Sims had argued the change had the potential to "constrain the pricing of [electricity] generation businesses, limit the need for additional generation and lead to lower prices".

The rule changes are a win for community and environment groups that fought for the shift to demand response — the Public Interest Advocacy Centre, the Australia Institute and the Total Environment Centre.

"Big energy users like factories and farms will be able to earn money by saving energy during heatwaves and at other times when electricity prices are high," the Australia Institute's Dan Cass said.

"This will push down prices for all consumers, improve reliability and help Australia safely retire our 20 remaining coal-fired power stations."

Help us cut energy costs


Find out how our energy affordability campaign is helping to save you money and join the fight for lower prices today!

Learn more

Keep informed


Subscribe to our free weekly Connect eNewsletter and stay up to date with the key issues impacting older Australians, as well as the latest National Seniors Australia advocacy news and views.

Learn more

Member benefits and discounts


Pension Loans Scheme application service

Pension Loans Scheme application service

Save on Pension Boost's service when you boost your retirement income through the government's Pension Loans Scheme (PLS).

HelloFresh

HelloFresh

Get $90 off your first four HelloFresh boxes!

OR

Get 40% off your first HelloFresh box with National Seniors!

Support us for your chance to WIN $250,000 in gold!

Support us for your chance to WIN $250,000 in gold!

Draw closes soon! Get your tickets before Friday 17 July.

The Good Guys

The Good Guys

Sign up to Good Guys Commercial platform and win!


Join us today

Share your voice and select the benefits that matter to you with a National Seniors membership.

Join now