Announcement date
5 March 2026
Link to announcement
Competition and Consumer (Industry Code—Electricity Retail) Amendment Regulations 2026
Problem being addressed
Australia’s rapid uptake of rooftop solar is materially reshaping electricity demand and price outcomes in the National Electricity Market (NEM). During periods of high solar generation, wholesale prices are increasingly very low or negative. However, many households particularly renters, apartment dwellers and those without Clean Energy Regulator — are unable to directly benefit from this renewable energy surplus.
Proposal
In responding to the identified problem namely, that existing retail electricity tariffs do not provide clear, consistent or equitable incentives for households to shift electricity use into solar‑abundant, low‑cost periods—the Government has considered three policy options in detail. The Impact Analysis (IA) considers the following options, which differ in the degree of regulatory intervention, expected consumer uptake, cost‑recovery implications, and capacity to deliver equitable access to the benefits of abundant daytime solar generation.
- Option A0: the status quo or market‑led approach
- Option A1: a regulated Free Power Period (FPP) standing offer—equivalent to the Solar Sharer Offer
- Option A2: Voluntary industry-led code or guidance framework (non-mandated standardised FPP design)
Assessed Impact Analysis outcome
Adequate
Assessment comments
The IA would have benefitted from further quantitative analysis of the likely impacts and a detailed regulatory burden estimate.
Regulatory burden
The Department of Climate Change, Energy, the Environment and Water (the Department) did not provide a regulatory burden estimate at time of Second Pass Final Assessment with the Office of Impact Analysis (OIA), as the work gathering supporting data, associated cost estimates and analysis was ongoing.
Addendum – 4 March 2026
The Department has estimated that the regulatory burden associated with the preferred option is $1.34M per annum. See attached addendum for more details.
An estimate or regulatory burden prepared consistent with the Australian Government’s Regulatory Burden Measurement Framework was provided to the OIA on 4 March 2026.