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Australia - Smart Meters in Victoria - Case Study

Synopsis

In 2010/2011 the State of Victoria embarked on a rollout of smart meters. This was prompted by serious electricity outages earlier in that decade. With temperatures more regularly soaring into the 40s an increasing number of air-conditioning systems were being installed and the capability of the electricity supply to deliver sufficient energy during these peaks was being seriously tested.

Tin 2006 the Council of Australian Governments (COAG) launched a cost benefit analysis for the rollout of smart meters. At that time BuddeComm argued that the MCE should consider the broader option of smart grids rather than looking at smart meters in isolation. Under pressure from the Victorian state government the issue of smart grids was ignored and in 2010 the state started to roll out its advanced metering infrastructure (AMI).

The program ran into serious problems after the Auditor-General of Victoria questioned the cost-effectiveness of the project. Furthermore a consumer revolt was brewing, similar to those taking place elsewhere in the world. Consumers were forced to pay for the rollout without obtaining any personal benefit. At the same time electricity prices were rising significantly and it was perceived that meters only served to benefit the electricity companies and that they were being used by them to further increase costs. The debate was heavily influenced by a media frenzy fuelling the discontent.

With a change in the federal government the national policy focus was moving towards smart grids, and Victoria was caught between the old AMI policy and the future energy needs that had to be addressed by the much broader concept of smart grids.

In December 2011 the government decided to continue with the roll out. It however, is implementing the recommendations of the Auditor General.

Hot topics in this report include:

Smart meters, AMI, smart grids, super grid, energy internet, internet of things.

Table of Contents

  • 1. Synopsis
  • 2. Plan for national smart meter rollout
    • 2.1 Ministerial Council on Energy (MCE)
      • 2.1.1 National plan for smart meter rollouts
      • 2.1.2 Emissions Trading Scheme (ETS)
      • 2.1.3 Other developments
  • 3. The rollout of smart meters in Victoria
    • 3.1 first cab off the rank
    • 3.2 The consumer revolt
    • 3.3 Technical limitations
    • 3.4 Federal Government moved to smart grid policies
    • 3.5 Regulator missing in action
    • 3.6 State Government Review
      • 3.6.1 Concerns from Auditor-General
      • 3.6.2 AMI program review
      • 3.6.3 Key outcomes and concerns from submissions
      • 3.6.4 Continuation of the roll out
  • 4. Other Reports

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Number of pages: 7

Status: Current

Last update: 14 December 2011
View update history

Author: Paul Budde

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