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Weekend media reports claiming that an air conditioner tax is being introduced in 2017 to reduce the burden on
Australia's electricity network are incorrect.

There are also no plans to force householders to relocate rooftop solar panels, according to the Australian Energy Markets Commission (AEMC), the body tasked with setting rules for the national electricity and gas markets.

AEMC spokesperson Prudence Anderson told CCN new rules governing energy use are being introduced to
"change behaviour" by providing incentives for users to consume energy during off-peak periods.

The rules will be phased in over five years and will impact both household users and businesses. Currently, charges are capped allowing "power guzzlers" to get a free ride at the expense of users that are more energy efficient.

"Right now everyone pays a flat charge to cover the costs of the electricity network. This means consumers who use most of their energy at off-peak times are paying more than their share of the costs – and people who use most of their energy at peak times are paying less than it costs," she said.
"There is no air conditioner tax we are just trying to introduce cost-reflective prices so that users with the flattest load profiles will receive the biggest and most immediate benefits."

Media reports last week blamed air conditioners for the growth in peak demand. To address the problem, the reports said families will be hit with charges as high as  $700 per year to use an air conditioner.

There were even claims that solar panels on rooftops would need to be relocated as a result of the rule changes, but they are untrue.

Asked how the new rules will impact pricing, Anderson said research shows up to 80 per cent of users will actually save money. The biggest beneficiaries will be energy efficient, off peak users.

"The same research found that businesses that change their pattern of use for just 20 hours or more per year at times of high demand when networks are congested, could save around $2,000 per year," she said.

"Everyone will benefit in the longer term as lower peak demand reduces the need for infrastructure investment."

New prices under the rule changes will be introduced in 2017.