About Smart Meters
Smart Meter Review and Decision
Following an extensive review of the Smart Meter program, major changes will be made to ensure consumers receive the benefits.
The Victorian Government has determined that the best option for Victoria is to continue with an improved rollout, which makes delivery of consumer benefits the top priority.
Smart Meter rollout is continuing
The State Government review has found the most responsible option is to continue the rollout of Smart Meters to all homes and small businesses by the end of 2013 – with improvements that bring greater benefits to consumers, sooner.
These benefits will include helping consumers better understand and control their energy consumption through devices like in-home displays, and providing households and businesses with more pricing options.
These benefits will include helping consumers better understand and control their energy consumption through devices like in-home displays, and providing households and businesses with greater pricing choice and billing frequency.
Switching to flexible pricing, which will become more widely available from 2013, will remain optional.
The decision is based on advice from the Auditor-General, who stated in his report on Smart Meters that: "If the project's emerging risks delay the installation of Smart Meters it is likely that consumers will face further cost increases and gain fewer benefits."
The extensive Government review found Smart Metering technology is sound, and with better program management will provide many benefits to the Victorian community.
Main changes
- Subsidising in-home displays to help households control their energy bills, with some basic in-home displays available at low cost by mid-2012.
- Progressively offering remote connections for Victorians moving house from 1 Jan 2012, saving customers around $15, or more than $100 after hours.
- Extending the delay on the introduction of flexible pricing until at least 2013, to allow time for consumers to learn more about their options.
- Ensuring Victorian consumers can choose to remain on flat rates even when flexible pricing is introduced.
- Toughening the regulation of Smart Meter cost recovery by distribution businesses, including through removing the automatic allowance for cost overruns of 10 to 20 per cent put in place under the former Labor government.
Providing greater oversight by government and giving consumer and welfare groups a much stronger voice in the Smart Meter rollout process through a new Ministerial Advisory Council.
Review findings
The review of the Smart Meter program found:
- At this stage of the program's life, the maximum benefit is delivered by continuing the rollout.
- Smart Meters are safe and fall well within the requirements for electromagnetic and radiofrequency emissions.
- Consumers can benefit from an orderly introduction of flexible pricing, including the continuation of flat rates.
- Greater customer engagement is required to better explain Smart Meters and their operation.
