AEMC Increasing Network Charges

AEMC Increasing Network Charges

AEMC Increasing Network Charges

Key Points

  • Fixed charges are about to skyrocket. Your bill doesn’t have to
  • Other solar owners face $700/year more, BYOB customers can pay $0
  • Lock in $0 bills before the new tariffs hit

Why rising fixed electricity charges matter for households and how we’re helping

Australia’s energy system is changing rapidly. More homes than ever have invested in rooftop solar and batteries to cut bills, reduce reliance on the grid and lower emissions. But a proposed change to how electricity network costs are recovered could significantly alter what households pay – and not in favour of those making smart energy choices.

Here’s what’s going on, what it could mean for residential customers, and how we help keep your energy costs under control.

What is AEMC proposing?

The Australian Energy Market Commission (AEMC) has released a draft report recommending a shift in how electricity network costs – the costs of poles, wires and system support – are recovered from households. Under this proposal, a much larger share of network costs would be charged as a fixed daily fee, rather than being linked to how much electricity you use or when you use it.

Historically, variable or usage-based charges have meant that households that use less grid electricity – for example because they have solar and batteries – pay less overall. But increasing the fixed portion of your bill means that no matter how little electricity you draw from the grid, that fixed cost still applies.

The AEMC says these reforms are part of a broader effort to design a pricing framework that is “smarter, fairer and delivers the lowest overall cost” – though its own draft report acknowledges the complexity and need for careful transition management.

What it could mean for households

Advocacy groups and independent analysts warn the effect could be significant for many Australian households:

  • Solar and battery owners could be hundreds worse off each year – modelling suggests households with an 8kW solar system and a 20kWh battery could see annual bills rise by ~$400-$700 due to the higher fixed component.
  • Low-usage and low-income households could also pay more – in some estimates this group could be around $100-$200 annually worse off.
  • The financial case for investing in solar and battery systems may weaken because you earn less from reducing grid usage if bills are dominated by fixed daily charges.
  • Households with high overall consumption could benefit under some scenarios, as fixed charges reduce the benefit of reduction.

In short, while the intention is to better share network costs, the result could be that those who have worked hard to reduce their electricity use – and their grid reliance – see less financial benefit from doing so.

Why this matters

Fixed charges are unavoidable – they are paid regardless of how much electricity enters your home from the grid. That means:

  • Homes with rooftop solar that export power back to the grid still face the same fixed cost
  • Batteries that reduce grid reliance provide less value in lowering bills
  • Energy efficiency upgrades deliver smaller bill reductions

For many households, especially those on low incomes or with low electricity use, the result can be higher bills even when energy consumption stays low.

Critics also point out that if pricing doesn’t reward energy-saving behaviour, it could slow the uptake of technologies that help the grid in the long term – like solar, batteries, electric vehicles and energy efficiency upgrades.

How HighFlow can help

At HighFlow, we believe households shouldn’t be punished for lowering their grid dependence or investing in clean energy. That’s why our approach is designed to give householders certainty and protection from unpredictable network cost shifts.

Whether through tailored retail plans or programs that leverage behind-the-meter assets like batteries and solar, we help:

  • Keep energy costs predictable – reducing your exposure to fixed charges as they evolve
  • Protect the value of your solar and battery investment by aligning incentives with real-world savings
  • Ensure you benefit from reducing grid consumption, rather than being penalised for it

We work with customers to design solutions that navigate tariff changes and preserve value – so you stay in control of your energy bill.

Looking ahead

If the AEMC Increasing Network Charges: The final decision on the pricing review is expected later in 2026, with stakeholders continuing to submit feedback and advocate for fairer outcomes.

Whatever happens, one thing is clear: pricing structures that ignore how households use energy risk undermining the very behaviour and investment that helps lower bills and emissions.

If you’re a homeowner with solar and a battery, or you’re considering investing in clean energy tech, now is a crucial time to understand how tariff changes could impact your costs – and how to protect yourself from rising fixed charges.