Submission to AEMC Unlocking CER benefits through flexible trading arrangements

PIAC made a submission to the AEMC Unlocking CER benefits through flexible trading. 

Well-designed flexible trading provisions could help enable a more efficient energy system transition. They could contribute to improved coordination of consumer energy resources (CER) through the development of virtual power plants and materially reduce maximum demand and the need for new generation and system augmentation.

Consumers are currently limited to having one provider manage all their electricity generation and load, including rooftop solar, batteries, and electric vehicles (EVs). We strongly disagree with the AEMC’s proposal to maintain this limitation. We contend that abandoning any efforts to enable small consumers to trade with multiple providers undermines the central purpose and greatest potential value of this rule change.

PIAC provided recommendations to level the playing field for small generation aggregators (SGAs). Our recommendations serve to incentivise the development of products and services that optimise benefit for consumers and contribute more meaningfully to the efficient operation of the electricity system.

The AEMC has taken a step forward, though even it regards this step as ‘relatively modest’. The proposed changes are purported to promote innovation and competition, but the vital change to unlock the potential of CER, that of enabling small consumers to enter contracts with different providers, is still missing.