Australia’s Energy Crisis: Who’s Really Looking Out for Consumers?
Australia’s electricity system is at a crossroads. With bills surging, reliability faltering, and public trust wearing thin, many are asking: Why are electricity prices in Australia so high? And more importantly, who benefits from this broken model?
In this extended conversation, Markus sat down with Tim Ryan, an energy systems expert with deep experience in grid reform, consumer energy rights, and digital energy technology. Together, they unpack what’s gone wrong—and how it could be fixed.
“We’ve Built an Eight-Lane Highway We Only Use 20 Hours a Year”
Tim kicks off the conversation with a powerful metaphor:
“We’ve built a grid like an eight-lane highway—except we only use all eight lanes for about 20 hours a year. The rest of the time, it chugs along happily with far less load.”
He explains that Australia’s grid was designed for extreme peak periods, which happen infrequently. But this overbuild comes at massive cost, paid for by consumers year-round. The solution, he argues, is smarter demand management: shifting energy use away from peak hours rather than constantly expanding infrastructure.
Why Energy Prices Keep Going Up
“People just want electricity prices to come down. Our manufacturing relies on it. If we pay three times what China does for making glass, we’ll never make glass here again.”
Tim agrees. He points to the current energy market structure, which allows the last generator in the stack—often expensive gas—to set the price for everyone else. This creates an incentive for generators and retailers to game the system and profit from volatility.
“Retailers don’t want a stable market,” Tim adds. “They thrive on volatility because it creates profit. That’s the fundamental conflict.”
Tim is blunt:
“Right now, most Australians have no idea what they’re paying for electricity—or when it’s cheap or expensive. The system doesn’t give them the data to make good choices.”
He points to the lack of real-time price signals and poor adoption of smart meters as major barriers. While smart meters could allow consumers to shift usage and save money, the rollout has been poorly managed. Retailers, he says, often own the data and lock consumers out of it.
“Your data is valuable,” he explains. “But retailers are monetising it—without your permission or benefit.”
Community Batteries vs. Personal Storage: What Actually Works?
“Why not just put a solar and battery combo on every roof?”
Tim agrees in principle but adds that community batteries may offer better value:
“Instead of making everyone a battery expert, it’s more efficient to have larger, shared batteries managed by networks—not retailers.”
He highlights issues with current government incentives, like the NSW battery rebate, which requires joining a VPP (Virtual Power Plant). But most VPPs are retailer-run, which means:
“You buy the battery, you let them control it—and they make most of the money.”
Retailers, Rebate Rorts, and Data Gatekeeping
Tim is particularly critical of how energy retailers operate:
“They control the smart meter rollout, the data, and even how flexible pricing is implemented. They’re not delivering cheaper electricity—they’re just reshuffling the deck chairs.”
He explains that even government rebates often end up benefiting retailers more than consumers:
“If you’re getting $63 in benefit from a smart hot water system, but your retailer’s making $480 off it… that’s not a fair deal.”
The Real Fix: Digitisation, Flexibility, and Honest Policy
So what would actually bring down energy prices?
Tim outlines a clear set of priorities:
Universal smart meter rollout with real-time data access.
Flexible pricing with clear signals to consumers.
Empowering networks (DNSPs) to act as honest brokers, not retailers.
Strategic community batteries and EV integration (vehicle-to-home/grid).
Transparent government policy free from lobbying interference.
He adds: “Only 15–20% of consumers need to shift their usage for everyone to benefit. Let’s support those people with the tools to do it.”
Politics, Lobbying and the True Cost of Chaos
Markus gets personal:
“We’ve used energy as a political football to knock off prime ministers. Meanwhile, every Australian pays the price.”
Tim agrees.
“Our energy policy has been wedged by politics and poisoned by vested interests. The big three—AGL, Origin, EnergyAustralia—control over 80% of the market. And they benefit from volatility, not stability.”
“The real tragedy?” he adds. “All of this is fixable. But we need leadership willing to confront the oligopoly.”
Final Word: “We Have the Tech. What We Lack Is Political Will.”
Tim concludes with a sobering truth:
“We already have the technology to build a flexible, reliable, cheap grid. But the politics—and business models—are getting in the way.”
“It’s not about picking solar or nuclear. It’s about designing a system that works for consumers—not just corporations.”
