2026-014 Electricity Pricing Reform Assessment

The Cost Allocation and Recovery Review (CARR) is exploring how alternative pricing arrangements could affect consumer outcomes and wider system costs. A key evidence gap is quantifying the relationship between changes in electricity demand (both overall volumes and within-year load shapes) and total system costs across generation and networks. Pricing reform could plausibly shift demand levels through electrification and behavioural response and could also change when electricity is consumed (e.g., peak reduction...