The evolving energy system must have equity at its heart

The energy transition has potential to mitigate or exacerbate the impact of energy inequity on households.

Equitable energy policy approaches should ensure that people are supported according to their differing needs to reach an equal outcome. For example, many are not represented in energy policies, in fuel poverty statistics/indicators or in decision-making arenas, including new migrants and refugees.

Flexibility in the timing of energy use can help reduce bills by allowing people to access services that provide cheaper electricity at certain times or for certain appliances. This also keeps system costs, and therefore bills, down for everyone.

However, while affluent households with smart tech could make big savings for little change in lifestyle, struggling households may increasingly feel obliged to compromise on living standards to access savings, or even face higher prices if they cannot shift their energy use.

As the energy system incorporates more flexible approaches to demand, regulatory oversight needs to monitor distributional outcomes and set standards that prevent a two-tier service quality divide between flexible and inflexible customers. This should include affordable finance and subsidies, solutions for renters, and network planning to support community flexibility, as well as reforms to avoid penalising “necessary” inflexible consumption.