TIMETABLE SET BACK FOR NEW METERS
29 September 2008
Mathew Murphy, Energy Reporter
THE Victorian Government has finally conceded that its timetable for the $2 billion roll-out of smart electricity meters is unachievable, pushing the program out by a year.
It comes after BusinessDay revealed in April that the proposed 2012 roll-out was unlikely to be achieved following a confidential letter to the Government from the independent steering committee.
In the letter by independent chairman John Dawkins, obtained by BusinessDay, serious concerns were raised about whether the timetable could be "confidently achieved", and warned that the meters could be "prematurely retired" if the specifications were different from those decided for the national roll-out.
The meters are designed to give consumers regular updates on how much power they are using, how much it is costing, and greenhouse gas emissions generated.
Retailers can then raise prices during periods of high demand, encouraging people to run energy-hungry appliances such as dishwashers and washing machines off-peak.
Acting Energy Minister Joe Helper today will announce that the roll-out to 2.7 million Victorian homes will start mid-next year and that industry will be required to have it completed by the end of 2013.
"The changes will ensure the roll-out provides a valuable tool for Victorian consumers, while ensuring the system can be fully integrated in the future into a national scheme, reducing red tape for industry," he said.
Mr Dawkins welcomed the move, saying it had reduced the chance of the meters becoming instantly obsolete.
"The revised timetable and service levels mean less risk for industry and improves the chances of greater national consistency in smart metering," he said.
The Australian Energy Market Commission has also decided that the roll-out would be led by energy distributors, not retailers.
"An accelerated roll-out of (smart meters) would enable a number of efficiency benefits to be realised," the commission said. "These benefits would not be available to the same extent and as rapidly under a retailer mandated roll-out of (smart meters).
"There are some disadvantages associated with a distributor-led roll-out, but they could be minimised by the implementation of mechanisms to allow for the transition from service provided under a monopoly environment to a contestable environment."
KEY POINTS
- The roll-out to 2.7 million Victorian homes will now start mid-next year.
- Decision reduces the chance of electricity "smart meters" becoming instantly obsolete.
©2008 Copyright John Fairfax Holdings Limited. www.theage.com.au
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