The Network has responded with a submission to the Australian Energy Regulator’s 2026 Rate of Return Instrument (RORI) Review.

RORI settings directly influence the revenues of monopoly network businesses and therefore shape significantly household electricity bills.

Evidence shows First Nations households are more vulnerable to energy price increases, more exposed to network charges, and less able to mitigate costs through Consumer Energy Resources. Any increase in network charges will fall hardest on those who are already least able to absorb additional costs.

The First Nations Clean Energy Strategy, endorsed by all Energy Ministers, represents a shared national expectation that decision-makers — including economic regulators — consider its principles when designing or applying energy frameworks.

For the Australian Energy Regulator, this means ensuring that the long-term interests of consumers incorporate the specific circumstances of First Nations households whose experiences may not be reflected in average bill modelling.

The Strategy’s broader focus on equity and participation also establishes a foundation for recognising the role of culturally informed engagement in reducing project risk, improving social licence and building trust — matters which are increasingly relevant to network businesses and investors.

The Network’s view is that the Australian Energy Regulator should apply a distributional lens to the RORI review, carefully assess affordability impacts on First Nations consumers, and recognise that strong First Nations engagement reduces risk and improves investment certainty.

We recognise that network businesses are highly responsive to financial incentives.

The RORI could be a lever for embedding better and more equitable outcomes for First Nations customers if reviewed and audited.

The long-term interests of consumers, particularly those experiencing structural energy hardship, must be central to the AER’s decisions.

Read our submission