Stronger consumer safeguards proposed for Australia’s smart meter rollout

Additional consumer protections are considered necessary for Australia’s national electricity market’s accelerated smart meter rollout to go ahead.

The proposed two additional protections come in the wake of an earlier consultation and are focussed primarily on the potential impact of retail tariff variations and particularly the possibility of unexpected bill increases following such changes.

One is a new explicit informed consent requirement, which would require customers to give their explicit informed consent for retailers to change their retail tariff following a smart meter deployment.

This right would last for three years after the customer receives the smart meter and would apply to customers who receive a tariff change as a result of receiving the new meter.

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The second is a mandatory flat tariff option which designated retailers would be required to make available to all customers.

This measure would be implemented by jurisdictions, which would need to opt in to the requirement for it to come into effect.

Commenting that these proposals are a response to the community’s concerns, Anna Collyer, chair of the Australian Energy Market Commission (AEMC), said: ”These proposed safeguards aim to give customers more control and choice over their energy pricing while still enabling the important rollout of smart meter technology.

“We’re seeking to strike a balance between enabling the rollout of this important technology and ensuring strong consumer protections are in place. Social licence is critical for realising the full benefits of smart meters.”

These new measures seek to build on the tariff change protections previously outlined in the AEMC’s April draft determination, which include 30 business days’ notice before retail tariff changes, information to help customers understand new tariffs and historical bill comparisons where available.

The proposals are now open for consultation to 12 September 2024, with the date for final determination having been extended to 28 November 2024 to allow for this.

The AEMC decided in March to fast track the smart meter rollout process to achieve a full rollout by 2030 across the national electricity market, i.e. Queensland, New South Wales including the ACT, Victoria, Tasmania and South Australia.

The Commission has estimated the rollout could deliver net benefits to customers and the broader energy system of Au$507 million (US$335 million) across this region.