Greens propose smart meters as way to manage electricity costs
By | Mar 10, 2010
The Smart Meters (Consumer Choice) Bill, proposed by Green MP David Clendon, aims to empower domestic consumers to better manage their electricity use by requiring providers of smart meters to inform domestic consumers of their options when being upgraded to smart meters, and setting minimum requirements for the provision of smart meters. It will be an amendment to the Electricity Act 1992.
The Bill gives effect to the recommendations from the Parliamentary Commissioner for the Environment’s report Smart electricity meters: How households and the environment can benefit (June 2009). Dr Jan Wright has expressed disappointment that householders are being told by electricity companies they can’t have a really smart electricity meter installed. Meters with the capability to enable consumers to minimise power costs can be installed, and as well as saving households money, this would benefit the nation, making better use of electricity generating capacity (delaying the need for more power stations) and reducing carbon dioxide emissions from coal and gas stations. The cost of ensuring meters have this capability when they are installed is very low; retrofitting them later is expensive.
A smart meter identifies consumption of electricity in more detail than a conventional meter, and communicates that information to the utility provider. Traditional electrical meters only measure total consumption and as such, provide no information of when the energy was consumed. Smart meters provide an economical way of measuring this information, allowing price setting agencies to introduce different prices for consumption based on the time of day and the season.
Smart electricity meters and an interactive power grid will allow power companies to impose variable or time-of-day pricing, providing an incentive to either use less power altogether or less during peak hours. Combined with smart appliances, this would make for a formidably economic home network. Smart appliances have the ability to “talk” to the power grid and each other, in order to minimise peak hour power usage. For example, if you were to turn on your oven to cook a meal when electricity rates are high, your stove will literally tell your refrigerator to delay defrosting or adjust its temperature until dinner is served. Likewise, the washing machine will send a signal to the dishwasher to switch on once the clothes are done.
The bill places obligations on providers of smart meters to inform consumers about particular features: An industry participant who installs, services or upgrades a smart meter in any domestic premises must offer an in-home display, a smart meter capable of measuring separately both import and export of electricity, and the choice between a fixed charge or a cost reflective tariff.
“The Bill ensures smart meters really will be smart and that consumers are offered a choice of tariffs and information that give them power to control their electricity costs,” MP David Clendon said.
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David Clendon
March 15th, 2010 at 2:28 pm
Thanks for raising awareness about this Bill and the potential benefits of installing genuinely smart meters. Here’s hoping we can persuade a majority in the House that it is an idea whose time has come!