Service innovation and disruption in the australian contestable retail market

Australia’s electricity system is undergoing a significant transformation. The once linear supply chain, where electricity generated by large power stations is transported across the high-voltage transmission network and through the low-voltage distribution network into homes and businesses, is becoming increasingly decentralized and bidirectional. In this chapter, the Australian energy market transformation is through the customer lens, with exploration of customer drivers, service innovation, and disruption trends. Consideration is given to how traditional energy retailers are responding to this transformation, and how new service entrants and business models are emerging and responding to consumer preferences, as well as policy reforms that are needed to enable a sustainable and affordable energy future in Australia.No Full Tex

From Throughput to Access Fees

This chapter critically evaluates how utilities will need to adjust their tariff structures to compete with new forms of energy production. The structure of these tariffs will be a critical determinant of the success or failure of utilities in the future. The authors assess existing and emerging tariff designs to address the advent of grid-connected substitutes such as distributed generation. The economic efficiency and equity implications of changing tariff designs are assessed based on existing and emerging technologies. The chapter concludes that utilities must be cautious in rapidly redesigning their business models or rebalancing their tariffs, as they attempt to recover revenue previously obtained through rising volumetric consumption. Importantly, adjusting tariffs to recover revenues in the short term may hasten the adoption of energy storage technologies, further undermining the financial stability of utilities in the long term.No Full Tex