Market Update | 4 July 2025

• Higher energy bills kick in as Federal battery scheme goes live
• Victorian Energy Services Commission publishes strategic plan for 2025 -29

Higher energy bills kick in.

July is the time when the energy retailers roll out their new rates for the coming financial year. For many the news has been confronting. One of our Sydney based staff has seen their usage rates increase by a whopping 20%. A quick search on the government’s Energy Made Easy comparison site provided little relief – even with this large increase their new rates were still among the best available. The level of increases vary markedly by location, with NSW customers, notably in regional locations, experiencing the highest rates across the National Energy Market (NSW, Victoria and Queensland).

Federal Energy Minister, Chris Bowen, has flagged plans to reform how power prices are set to curb soaring costs, with changes potentially coming into effect before the next round of annual rate-setting. The government believes the current system, run by the Australian Energy Regulator, is not serving bill payers in eastern seaboard states as well as Victoria’s state-run Essential Services Committee, which has sanctioned lower increases for Victorians. With little relief on the immediate horizon, there’s plenty of incentive to look at how energy is consumed, providing rocket fuel to the energy efficiency, solar and battery storage industries.

Federal battery scheme commences.

The Federal battery scheme is now live and the combination of a 30% discount together with falling battery prices has come at an opportune time – with the double whammy of increasing energy prices and sharp declines in solar feed in tariff rates creating a tsunami of demand.

The industry is working furiously to understand the compliance and processing requirements, which are anticipated to evolve further over the coming months.

The Clean Energy Regulator (CER) has confirmed that processing times for battery rebates will be the same as for solar installations – with an estimated timeframe of 6-8 weeks. When combined with the initial cap of two installations (solar or battery) per installer per day, or four ready to commission batteries, and the lack of bulk upload functionality in the registry, it’s going to be a slower-than-desired ramp up to a normal operating rhythm. To avoid issues with rebate claims, installers must ensure that installations meet the compliance standards of AS/NZS 5139.

Victoria ESC publishes its strategic plan for 2025-2029.

The Essential Services Commission (ESC) has released its Strategic Plan 2025–2029 and 2025–26 Regulatory Priorities, which outline its vision for fair and dependable essential services.

In the short term, for the 2025-26 period, the ESC’s compliance and enforcement priorities include addressing practices that compromise market integrity. The outlined areas of focus are: 

1. Take action to address practices that exacerbate cost-of-living pressures.
2. Hold businesses accountable when they fail to provide consumers experiencing vulnerability with fair and equitable access to essential services.
3. Deter conduct that increases the likelihood and impact of harm to customers affected by family violence.
4. Address conduct that compromises market integrity.
5. Focus on conduct impacting Victoria’s First Nations people.

For installers under the VEU, the program is continuing to maintain a rigorous focus on installer certification, quality installations and a clampdown on practices that do not align with the rules and integrity of the program. The ESC has also expanded its authority to be able to take action against both installers and scheme participants that engage in misconduct under the Scheme. 

At Ecovantage, we consistently analyse market activity, policy changes, consultation releases, and creation rates in conjunction with wider landscape activity. This allows us to keep our clients at the forefront of all relevant changes, and to leverage the advantage that this presents. Thank you for your continued support, and please reach out if you have any general or project-specific questions.