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Energy regulation

Regulatory disparities disadvantage remote Australian communities in energy transition

Not all Australian communities are equally protected by consumer electricity retail regulations, with remote and Indigenous communities more likely to be underserved on multiple fronts. Communities in regions potentially critical to energy transition are often underserved by regulations that would otherwise ensure their own energy needs, hindering progress toward a just transition.

Messages for policy

  • One in five Australians live in settlements without all five categories of legal protection, and under-protected settlements are almost without exception at the spatial periphery in remote regions.

  • Remote communities and majority Indigenous communities are more likely to be underserved by electricity retail regulatory protections in Australia (18% and 15% respectively; these groups overlap).

  • Clarity of rooftop solar connection conditions for prepay customers requires remedial policymaking to improve opportunities for priority communities.

  • Disconnection reporting should be required nationwide for all customer types. The absence of so-called prepay ‘self-disconnection’ reporting obscures the level of energy insecurity in many settlements.

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Fig. 1: Communities where Australian consumers are underserved by regulations for electricity.

Further Reading

  • Bouzarovski, S. & Simcock, N. Spatializing energy justice. Energy Policy 107, 640–648 (2017). This study applies a spatial lens to energy justice, recognizing that within current energy systems, groups at the spatial periphery are at high risk of having their energy needs under-recognized and procedurally neglected.

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  • Carley, S. & Konisky, D. M. The justice and equity implications of the clean energy transition. Nat. Energy 5, 569–577 (2020). This review discusses how just transition occurs when costs and benefits of energy transition are evenly distributed across communities, requiring pre-existing structural and policy-based disparities to be identified and overcome in order to avoid perpetuating entrenched vulnerabilities.

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  • Riley, B. et al. Connected: Rooftop solar, prepay and reducing energy insecurity in remote Australia. Aust. Geog. 54, 325–346 (2023). This case study finds that access to fully subsidized rooftop solar wholly mitigates the incidence of involuntary ‘self-disconnection’ due to inability to pay, for a single (the first) prepayment household to connect PV to prepay in public housing in Australia’s remote Northern Territory.

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  • Grealy, L. Enforced commensuration and the bureaucratic invention of household energy insecurity. Aust. Geog. 54, 155–172 (2023). This study presents a critical analysis of regulatory changes introducing mandatory prepay for prescribed customers in the Aṉangu Pitjantjatjara Yankunytjatjara (APY) Lands in northwest South Australia.

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  • Longden, T. et al. Energy insecurity during temperature extremes in remote Australia. Nat. Energy 7, 43–54 (2022). This study of energy data from 3,300 prepay households in 28 remote Indigenous communities in the Northern Territory demonstrates 74% of households disconnected more than ten times annually, with the risk of involuntary self-disconnection increasing during temperature extremes.

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Acknowledgements

This project received funding from Energy Consumers Australia (ECA) under grant ARFEB22001 as part of its grants process for consumer advocacy projects and research projects for the benefit of consumers of electricity and natural gas. The views expressed in this document do not necessarily reflect the views of ECA.

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Correspondence to Lee V. White.

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White, L.V., Riley, B., Wilson, S. et al. Regulatory disparities disadvantage remote Australian communities in energy transition. Nat Energy 9, 14–15 (2024). https://doi.org/10.1038/s41560-023-01433-2

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