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The nation\u2019s 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.<\/p>\n
However, the Australian Energy Market Commission\u2019s push for smart meters will revive memories of Victoria\u2019s controversial compulsory rollout, which the state\u2019s auditor-general found cost more than $2 billion while not delivering promised benefits to consumers.<\/p>\n
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Soaring power bills are set to remain high for years to come. <\/span>Credit: <\/span>iStock<\/cite><\/p>\n The commission\u2019s 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.<\/p>\n \u201cA 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,\u201d Collyer said.<\/p>\n \u201cSmart 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.\u201d<\/p>\n 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.<\/p>\n Traditional accumulation meters register only total electricity usage and are owned by the network company, which saves money when they\u2019re swapped for new technology because workers don\u2019t need to be paid to visit homes to read meters.<\/p>\n 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.<\/p>\n Victoria\u2019s 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\u2019s auditor-general in 2015 found that the cost \u2013 more than $2 billion, recouped from consumers through network charges passed onto their retail bills \u2013 would not be outweighed by savings.<\/p>\n 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.<\/p>\n The audit did find, however, that the infrastructure might lead to future innovation and benefits to consumers.<\/p>\n 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.<\/p>\n Homeowners would foot the electrician\u2019s bill for this work \u2013 but options are being explored to use the federal government\u2019s Clean Energy Finance Corporation to offer cheap loans for installation costs, she said.<\/p>\n Collyer said better education would be critical to ensure homeowners saved money on their bills with smart meters.<\/p>\n 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.<\/p>\n \u201cWe need simple, plain English clear communications with customers so they understand what\u2019s happening and they understand what their choices are,\u201d she said.<\/p>\n