July 19, 2024
Smart meters play a crucial role in modernising our energy system. They provide detailed usage data, enable new retail products, and support the integration of rooftop solar and other distributed energy resources. The Australian Energy Market Commission (AEMC) recognises their importance and has been working to accelerate their deployment across the National Electricity Market.
The AEMC has taken a significant step towards modernising Australia’s energy system. The AEMC’s self-initiated review of the framework for metering services was published on August 30, 2023. It included several final recommendations such as an accelerated rollout of smart meters, better information for customers ahead of a meter upgrade, new customer protections, and improved data access arrangements for networks and energy customers.
Following this review, on April 4, 2024, the AEMC announced a draft rule to accelerate the deployment of smart meters to energy customers by 2030. This initiative brings to life foundational recommendations from its metering framework review, placing consumers at the forefront of the transition to net zero. The goal was to deploy smart meters to all customers quickly and efficiently, aiming for universal uptake by 2030. However, stakeholder feedback raised concerns about potential negative impacts on consumers, such as unexpected bill increases following tariff structure changes.
The draft rule includes two core reforms, so that customers and the broader energy system can access the benefits that smart meters offer sooner:
Accelerated Deployment of Smart Meters – deploying smart meters to customers faster to achieve cost savings,support a modern, data-enabled energy system, and give customers access to a range of benefits sooner.
Access to Power Quality Data – improving network access to important power quality information so that they can better manage their networks, reduce network costs for customers,save energy, and minimise network safety risks.
In addition, the draft rule also includes supporting reforms for customer safeguards to ensure a smooth transition:
New Customer Safeguards – protecting customers from potential cost risks by prohibiting any up front costs ahead of a smart meter installation, and increasing notification requirements ahead of tariff changes.
On the 4th of July 2024,the AEMC announced an extension to the final determination date for the Accelerating smart meter deployment rule change. The new date is set for November 28, 2024, allowing for further consultation on enhancing consumer protections following stakeholder feedback on the draft determination published on April 4, 2024.
The AEMC understands the important role smart meters will play in Australia’s energy transition and plans to continue accelerating their deployment – but not to the detriment of customers.
Smart meters offer consumers increased visibility into their energy use, allowing them to understand and manage their bills, whilst providing access to new and innovative tariffs. 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 or manage their usage.
All new embedded networks require electricity meters to meet minimum specifications, aligned to those of this smart meter rollout. Those who are in a position of owning, controlling or operating an embedded network, will need to begin planning for legacy meters to be upgraded and the provision of associated services. Importantly, there are AER Network Exemption implications for sites upgrading meters which these stakeholders should be aware of when planning ahead.
Ensuring your metering is compliant and will meet the requirements of this planned rollout will place those acting early enough in a strong position to provide a modern energy service, improving the experience for occupiers, and the accuracy of invoicing and outcomes for networks.
The AEMC is committed to progressing further reforms, including customer access to real-time data from smart meters. This initiative is the first step in a broader program of work to future proof Australia’s energy system and empower energy users to be part of the solutions moving ahead.
For more information, you can visit the AEMC’s website via the links and references below or reach out to our team to help you plan for your Metering improvements.
Resources:
https://www.aemc.gov.au/news-centre/media-releases/aemc-extends-smart-meter-rollout-decision-consult-further-consumer-safeguards
https://www.aemc.gov.au/market-reviews-advice/review-regulatory-framework-metering-services
https://www.aemc.gov.au/rule-changes/accelerating-smart-meter-deployment
