Submission on the Draft report on the Distribution Market Model

PIAC responded to the AEMC’s draft report on Distribution Market Model review. PIAC supports the AEMC’s intention to better capture the various costs and benefits of distributed energy resources grid and pass these on to their owners. PIAC contends that cost-reflective network tariffs are critical to achieve this goal. PIAC argues against the AEMC removing clause 6.1.4 of the National Electricity Rules which would allow distribution businesses to impose a charge on owners of PV systems to capture the costs and benefits they impose on the network by exporting their generation. Accurately calculating these costs and benefits and fairly apportioning them to customers is neither a simple nor straightforward exercise and would require a departure from widely accepted postage stamp pricing to avoid unfair outcomes for many consumers.