AEMC prepping smart meter spree
Print
The Australian Energy Market Commission (AEMC) is fast-tracking the installation of smart meters across the National Electricity Market (NEM).
The regulator is pushing ahead with reforms to ensure universal deployment by 2030, which it sees as a critical step in modernising Australia’s energy grid and supporting the transition to renewable energy.
Alongside the rollout, a series of consumer protection measures will be implemented to address potential concerns.
AEMC Chair Anna Collyer says smart meters are the “digital foundation” for a modern and efficient system, playing a pivotal role in decarbonising the grid while enabling households and businesses to engage more dynamically with the energy market.
The accelerated rollout is designed to deliver benefits more quickly to consumers.
By providing real-time data, smart meters allow for better network management and operational efficiency.
This is particularly crucial as the energy market grapples with increasing complexity from the rise of renewable technologies, such as rooftop solar panels, home batteries, and electric vehicles.
Network operators are set to gain improved access to power quality data through these reforms. Consumers should benefit from quicker power restorations after outages, lower network expenses, and the elimination of estimated billing - a source of frustration for many.
A significant feature of the reform is a two-year safeguard period following smart meter installation.
During this time, retailers are prohibited from changing a customer’s tariff unless explicit informed consent is provided.
Beyond this period, they will need to offer clear comparisons of historical and potential bills to help customers decide whether to adopt new pricing plans.
Additionally, jurisdictions can require retailers to provide flat-rate tariffs for customers who prefer simpler, more predictable options.
The reforms have been shaped by years of consultation with stakeholders, including consumer advocates and industry representatives.
Responding to concerns about unexpected tariff changes, the AEMC has strengthened protections and clarified obligations for retailers.
The AEMC has acknowledged that some energy providers had exploited ambiguities in the rules to impose new pricing structures without adequate customer notification.
Victoria currently leads the way in smart meter adoption, with over 99 per cent of households equipped with the technology.
Other states, including New South Wales and Queensland, are catching up, with current rates below 50 per cent.
The reforms aim to bridge these gaps by rolling out meters more efficiently and systematically, avoiding piecemeal installations that have been costly and slow.
The AEMC says its cost-benefit analysis shows savings from avoiding manual meter readings, leveraging economies of scale, and reducing downtime during power outages.
The rollout will be phased in from late 2024, with the accelerated deployment starting in December 2025.
By 2030, every Australian household and business within the NEM should have a smart meter.
More details are accessible here.
