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The nation’s energy market rule maker wants smart electricity meters installed in every household across the eastern seaboard by 2030, which it says would cut bills and make the system more responsive to the influx of renewables pouring into the grid.
However, the Australian Energy Market Commission’s push for smart meters will revive memories of Victoria’s controversial compulsory rollout, which the state’s auditor-general found cost more than $2 billion while not delivering promised benefits to consumers.
Soaring power bills are set to remain high for years to come. Credit: iStock
The commission’s chair, Anna Collyer, said a compulsory rollout should begin in 2025. Collyer argued the change would mean lower average bills for customers while retailers could reduce the volume of power they buy in expensive peak periods to reduce the risk of shortages on the electricity grid.
“A number of Australians are already using smart meters to cut power bills, from those who have resources such as rooftop solar, to customers without solar who may be using smart meters to access cheaper tariffs,” Collyer said.
“Smart meters present clear benefits for consumers and form a crucial link for the wider energy system, paving the way for significant advances necessary to reach net zero.”
Power bills rose hundreds of dollars earlier this year and are forecast to remain high for years to come, adding pressure to the Albanese government over its election promise to cut power bills by an average of $275 by 2025.
Traditional accumulation meters register only total electricity usage and are owned by the network company, which saves money when they’re swapped for new technology because workers don’t need to be paid to visit homes to read meters.
Smart meters deliver real-time data on household electricity use, which can then be used to manage electricity usage. Households can self-manage their usage or delegate that task to a retailer.
Victoria’s smart meter rollout began in 2009, resulting in almost all 2.5 million households in the state now having the technology. But a review by the state’s auditor-general in 2015 found that the cost – more than $2 billion, recouped from consumers through network charges passed onto their retail bills – would not be outweighed by savings.
The auditor-general found that most households did not understand how to use their smart meters to monitor energy consumption and access retail offers with the cheapest bills for their usage pattern.
The audit did find, however, that the infrastructure might lead to future innovation and benefits to consumers.
Across the rest of the eastern seaboard, smart meters have been taken up by under 25 per cent of customers, according to the commission, which also estimates around 10 per cent of houses would need their wiring upgraded to accommodate the new technology.
Homeowners would foot the electrician’s bill for this work – but options are being explored to use the federal government’s Clean Energy Finance Corporation to offer cheap loans for installation costs, she said.
Collyer said better education would be critical to ensure homeowners saved money on their bills with smart meters.
She said the commission would put protections in place for customers, including requirements for information to be provided on two occasions: first, when they get their smart meter and second, when a retailer proposes any change in tariff.
“We need simple, plain English clear communications with customers so they understand what’s happening and they understand what their choices are,” she said.
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