MEUG welcomes PCE report on smart meters

Major Electricity Users' Group

Thursday, 25th June 2009
Embargoed until 3 pm
Media release by the Major Electricity Users’ Group (MEUG)
MEUG welcomes PCE report on smart meters

“The Parliamentary Commissioner for the Environment (PCE) report on Smart Electricity Meters is a welcome contribution towards finding ways that consumers can take control of how much power they consume leading to better utilisation and deferment of generation and transmission investment, hence helping the environment” said Ralph Matthes, Executive Director of the Major Electricity Users’ Group (MEUG).

“Smart meters will allow greater levels of consumer demand side response by the household and SME sectors. Currently only large power users with time-of-use meters have had the ability and incentive to actively manage demand in real time.

“The PCE recommends smart meters should have home area network communications capability installed rather than leaving the option to retailers to retrofit those later. This is a complex issue and we support more analysis of the PCE proposal compared to other strategies.

“Most importantly the PCE report identifies various factors and trade-offs that need to be considered. For example the need for different levels of functionality in smart meters by retailers with market dominance may not align with the needs of households. There is a problem of information asymmetry between households and retailers. Work is also needed on whether the retailer or individual households should decide how smart a new meter should be when first installed.

“The Smart Electricity Meters report by the PCE will help policy makers consider how to get more end consumer demand side response. Increasing the elasticity of demand side response by effective use of smart meters will improve competition, lower relative prices and better use resources. The environment will also be a winner” concluded Mr Matthes.

ENDS

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