This briefing note finds that all the major opportunities to improve energy affordability in electricity and gas also either support – or are independent to – Australia’s net zero ambitions. The findings dispel the notion that reducing emissions comes at the expense of Australian households and businesses. 

It finds there is significant room for improvement when it comes to energy affordability – but it is not about choosing a different electricity generation mix. It is about fixing inefficient energy markets and regulation, increasing competition and acting on the demand side.

Key findings

• A review of recognised pathways to improve energy affordability in electricity and gas shows that all the key opportunities are either aligned with net zero or neutral to climate policy outcomes.
• Significant investment is unavoidable to replace Australia's ageing electricity generation and network assets, and deploying renewables, transmission upgrades and storage is the lowest-cost option for new-build electricity generation.
• Focusing on energy efficiency, electrification and distributed energy resources offers the best pathway to reduce energy costs for households, reducing net energy bills by up to 67%.
• Fixing inefficient markets and regulation and increasing competition could offer immediate and lasting relief from rising energy costs, irrespective of the government's climate policy.