The Australian Energy Regulator (AER) has approved a “sandboxing” trial involving 5,600 smart meters in New South Wales to demonstrate their benefits for consumers and the energy market.
This trial, to be implemented by Endeavour Energy, is enabled by new regulatory powers that allow a time-limited waiver from specific requirements through the Energy Innovation Toolkit.
It involves smart meters across Greater Western Sydney, the Blue Mountains, the Southern Highlands, and the Illawarra region, and is set to conclude in 2025.
“Such energy innovation will play a vital role in delivering benefits to consumers in the future,” AER Chair Clare Savage said.
Smart meters are designed to provide customers with real-time online information about their electricity consumption, allowing consumers to take control of their energy use. This enables access to deals that incentivise shifting consumption to lower-demand periods, potentially reducing energy bills.
The Australian Energy Market Commission has recommended a 100 percent uptake of smart meters by 2030. The review found that an “accelerated rollout would help customers reduce their household bills in the short term and provide savings for all energy users in the longer term.”
To support this initiative, the federal government has announced a $50 million (US$34 million) loan from the Clean Energy Finance Corporation (CEFC) to Intellihub, Australia’s largest smart metering provider.
This funding aims to accelerate the deployment of smart meters and behind-the-meter (BTM) devices, empowering consumers to manage their energy consumption and costs better.
The CEFC said smart meters are crucial for Australia’s transition to a cleaner energy future, enabling users to monitor and control energy from various sources such as solar panels, batteries, and electric vehicle charging infrastructure.
Other states across Australia are gearing up for this transition.
Queensland is preparing for a significant smart meter rollout, with one of the most extensive programs slated to begin in 2024.
The Queensland government has also proposed a regulation change allowing households with smart meters to switch back to flat tariffs. This change follows the installation of time-of-use tariffs, which some consumers found confusing and led to unexpected bill increases.
In response to feedback about “bill shock,” the state government pushed for these new rules through the Energy and Climate Change Ministerial Council.
In Victoria, however, the rollout has faced significant backlash.
Stop Smart Meters Australia (SSMA) is a volunteer advocacy group formed in response to community objections against the Victorian government’s Advanced Metering Infrastructure rollout.
They assert that the implementation of smart meters contradicts key energy objectives designed to protect consumers’ long-term interests regarding price, quality, safety, and reliability.
They argue that the proposed rules do not align with the legislative requirements of the National Electricity Law (NEL) and the National Energy Retail Law (NERL), both of which prioritise the long-term welfare of electricity customers and the security of the national electricity system.
