A recent report released by ACOSS, Ai Group, the Energy Efficiency Council and the Property Council of Australia recommends energy system governance reforms to reduce energy bills, cut emissions and accelerate the transition to net zero through smarter energy use.
The report, Demanding Better, argues that Australia’s energy governance, markets and policy focus almost solely on energy supply and ignore ‘demand side’ measures such energy efficiency, electrification and demand flexibility which can save billions of dollars in energy costs and infrastructure developments.
The paper, released a week after the Federal Government announced a major review into the National Electricity Market, recommends Federal, State and Territory policymakers work together to:
- Immediately establish a national energy performance agency
- Set national energy performance targets, and measure progress
- Increase representation of consumers and demand side experts in decision-making
- Develop new policies and delivery models that meet energy users where they are
- Identify, understand and mitigate risks to equity
- Put the demand side at the heart of broader energy governance reform.
Energy Efficiency Council CEO, Luke Menzel said, “The most recent global rankings found Australia was worst in the developed world for energy efficiency policy and performance. That is shocking, but not a shock. We don’t have a national energy efficiency target, and we don’t have a dedicated agency with the resources to coordinate across governments and portfolios to drive energy performance improvements.”
“Our poor performance on energy efficiency is not some esoteric issue. It means Aussie businesses are less productive, family energy bills are higher than they need to be, and we aren’t taking advantage of some of the most cost effective opportunities for emissions reduction across the economy.”
Frankie Muskovic, Property Council of Australia’s National Policy Director said, “We cannot afford to ignore the demand side of the energy equation. Australia can leverage demand-side solutions, such as energy efficiency and demand flexibility, to support a more affordable transition to net-zero emissions.
Australia’s energy governance must adapt to the 21st century, where consumers and distributed energy resources are just as crucial as new large-scale generation and transmission in cutting emission and energy bills.”
ACOSS CEO, Dr Cassadra Goldie said “Retrofitting homes to be more thermally efficient and with efficient electric appliances will save households up to $2,005 a year and cut emissions. But it won’t happen, especially for low-income households and renters, without targeted support including loans, subsidies, advice and services to connect people with solutions.
“Cost saving solutions like more energy efficient homes have been overlooked for decades because there is too much focus on supply side and inadequate engagement with consumer and demand-side experts. Greater focus on, resourcing too, and engagement with consumers, consumer advocates and demand side experts is crucial to deliver more affordable, reliable and clean energy to everyone.”
The report highlights successful examples from jurisdictions like California, Ireland, and New Zealand, where effective governance arrangements have integrated demand-side actions into energy planning. The authors urge Australian policymakers to adopt similar approaches to achieve a cost-effective and equitable transition to a net zero emissions energy system.
