Overview
- The scheme begins in July 2026 for customers on Default Market Offer plans in New South Wales, south‑east Queensland and South Australia, with consultation to extend to other jurisdictions by 2027.
- Retailers must provide at least a three‑hour free window in the middle of the day, available to households with smart meters that opt in, including renters and those without rooftop solar.
- The Australian Energy Regulator has been directed to stop retailers from lifting prices outside the free period and will oversee implementation through changes to the Default Market Offer.
- Officials say shifting usage to the free window will soak up excess midday solar, reduce evening peaks and lower system costs, with government estimates of up to $800 in annual bill savings for households that adjust consumption.
- Industry groups criticised the lack of consultation and warned of potential market impacts and reduced competition, while noting some retailers already offer similar free daytime plans.