Thursday, 25 June 2009 23:06

The New Zealand government has been vocal about its support for smart meters but is advising that regulators require fully enabled smart meters instead of models that only offer limited functionality.  Energy Minister Gerry Brownlee said that he is waiting for the Electricity Commission to decide whether or not smart meters will be required or to leave the choice up to utilities.

“The Electricity Commission has to report to me by December 2009 on smart meters,” said Brownlee.  “I look forward with interest to see if the report calls for a more regulated approach to smart meters or reliance on industry guidelines.”

Jan Wright, the New Zealand government’s environmental watchdog, said that regulations and standards are needed.  Dr. Wright said that nearly all of the 1.3 million smart meters that are supposed to be installed by the end of 2011 really aren’t that smart.  She said these “dumb meters” will do little to save electricity or money for consumers.

The Parliamentary Commissioner for the Environment says that if the Energy Minister waits too long to act then consumers could be stuck with outdated technology.  “I recommend that the Government takes a more hands-on approach,” she said.

Dr. Wright added that utility companies are taking too many short cuts in their smart meter deployments and the devices will be missing critical functions needed to deliver the maximum benefits for consumers and the environment.

“This is not surprising given that encouraging more efficient electricity use appears to offer little financial benefit to retailers,” said Wright.  “Regulatory intervention is needed to ensure environmental and consumer benefits.”

True smart meters work by establishing bi-directional communications between households and energy suppliers.  With the proper functions included consumers can use smart meters to use energy much more efficiently by reducing usage when energy prices are high.

“The Government supports the rollout of smart meters but they have to be genuinely smart and not just revenue tools for the retailers,” said Brownlee.  “If they are just an opportunity for retailers to extract a bigger price then they are questionable.”

"I see merit in smart meters being fully enabled with chips and that they operate to a universal or open access protocol,” Brownlee continued.  “The meters need to be compatible with retail switching choices made by consumers."

The Green Party also wants the Government to take the lead.  Jeanette Fitzsimons, the party’s energy spokesperson, said it was “unthinkable” that 150,000 not-so-smart meters have already been installed.  “Just a few dollars more per installation would give homeowners power over their electricity bills, saving money right across the economy,” she said.

Mike Underhill, the Energy Efficiency and Conservation Authority chief executive, said that smart meters could make it a lot easier for consumers to use their household appliances more efficiently.  

The Major Electricity Users’ Group, an industrial lobby, said that Dr. Wright’s call for government involvement is “a complex issue.”  It is still to be determined whether homeowners or utilities will decide how intelligent the smart meters should be at the time of installation.

Charles Chauvel, Labour’s energy spokesperson, said smart meters must be able to communicate in both directions and be able to support smart appliances in the future.  “The potential in good standards for smart meters lies in for energy savings,” said Chauvel.

Genesis Energy began installing smart meters this February and said it will have 500,000 installed within five years.  These smart meters will allow Genesis Energy’s customers to manage their consumption during peak and off-peak times.  Dean Carroll, the company’s general manager, said the major hurdle is getting the variable tariffs introduced later this year.

Genesis Energy
Level 1, ASB Bank Building
500 Victoria Street
Private Bag 3131
Hamilton
New Zealand
http://www.genesisenergy.co.nz
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