Plan to accelerate smart meters deployments in Australia

The Australian Energy Market (AEMC) has decided to fast track a proposed rule change to accelerate the deployment of smart meters.

The request, which was made by South Australia distributor SA Power Networks, energy supplier Alinta Energy and metering provider Intellihub, calls for the implementation of a framework for a universal deployment of smart meters to all customers by 2030.

In addition, it calls for the implementation of a range of measures to better support customers though this accelerated rollout, including improving the information provided to them and applying new consumer protections when they receive a smart meter.

The proposed rule change was made in a letter dated 22 September 2023 following the AEMC’s completion of its review of the regulatory framework for metering services and mirrors the recommendations therein, the letter states.

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The only material difference is that the rule change request does not include the AEMC’s recommendations in relation to customer access to real-time data, as it was unlikely the changes could be implemented by 1 July 2025 – the commencement date for the acceleration of deployment.

“We have jointly proposed this rule change request because we support the recommendations in the AEMC’s final report and consider that they should be progressed as a matter of urgency,” state the signatories in the letter.

As the AEMC is unable to self-initiate a rule change request, the intent is to enable it to commence the process, they write.

Other proposed changes include improving the meter installation process by reducing barriers to installing smart meters and enabling more efficient and coordinated deployments and implementing a new regulatory framework for metering businesses to provide power quality data from smart meters to the distribution network service providers.

This would enable these providers to improve the visibility of their low voltage networks, better integrate consumer energy resources and improve safety for customers.

The requirements for undertaking tests and inspections of meters to avoid unnecessary costs also should be clarified and improved.

Smart meters status

The proposed rule change is set to have the most impact in New South Wales, the Australian Capital Territory, Queensland and South Australia where, at the time of the AEMC’s report, the average smart meter uptake was around 30%.

Tasmania has a programme in place to accelerate smart meter deployment by 2026, while Victoria has already achieved a near-universal uptake of smart meters.

While the number of smart meter deployments has been increasing each year it needs to increase substantially more from a little over 400,000 units in FY23 to over 700,000 units per year from FY26 to meet the 2030 universal rollout.

The proposed rule change based on a draft determination due on 4 April is open to comment until 30 May. The AEMC then expects to complete the process by 11 July.