An end to energy rip offs? New rules to make power bills simpler and cheaper
The energy rule-maker is moving to stop Aussies from paying the loyalty tax and make it easier for them to find a better electricity deal.
The Australian Energy Market Commission (AEMC) has published a draft proposal outlining a major overhaul of the electricity pricing framework.
It is slated to be implemented over the next 10 years, beginning from 2026.
It might FINALLY mean that down the line, we won't have to constantly crib about being ripped off by energy companies.
Here's a quick summary of the changes the AEMC wants to make
- It wants energy providers to charge customers the same price on the same plan. Right now, those who don't regularly shop around end up paying more for the same service. This is what we call the loyalty tax.
- It wants to move beyond 'discount wars' and get providers to proactively offer customers competitive rates without them having to shop around.
- For example, it could mean offering subscription-based plans, similar to Netflix. A monthly subscription would make it easier for people who want certainty. Others could sign up for a more flexible plan. This would serve those who are more engaged with their energy use.
- Next, the AEMC wants to make it easier for Aussies to compare energy plans, given the diversity of offers. This would mean upgrading Energy Made Easy, the government-run comparison site.
- It wants to introduce a 'fairer' way of sharing network costs with customers. There could be 'strong rewards' for customers who 'genuinely help the system, for example, storing solar in batteries and using it during peak hours. ' This could also urge retailers to create more innovative energy plans.
"The way we use energy is changing rapidly. By 2040, we expect one in every two Australian homes will have solar systems, one in every four will have batteries, and one in every four will have electric vehicles," AEMC chair Anna Collyer said in a media release.
"We're working toward a pricing framework that is robust and adaptable to these changes, supports a diverse range of products and services, gives consumers meaningful choice, and delivers the lowest-cost system that meets all consumers' needs."
Haven't compared energy plans in a while?
You could be missing out on a cheaper deal.
How can you save on energy bills right now?
While these reforms are good news for Australian households, they will take a while.
Until then, the best thing you can do is to find a cheaper deal.
We found that Aussies paid $2.9 billion in loyalty tax for electricity and gas this year by not shopping around, so that's a good place to start.
In fact, there's a $370 to $690 price gap between the cheapest and most expensive plan, depending on where you live.
This is based on yearly single-rate tariff plans in our database as of December 2025.
You can also call your energy provider to get on a cheaper plan. But knowing what other offers are out there will give you more negotiating power.
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