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Govt scare on smart meter costs

By Kevin Balshaw - 25th March 2010 - Back to News

An uncontrollable cost blowout in the installation of electricity smart meters at Victorian homes and businesses is the real reason for the Labor Government calling a halt to the scheme, says the Member for Eastern Victoria, Philip Davis.

Mr Davis said the Government had been forced to announce a moratorium on use of the smart meters for time-interval charging just five months after the rollout began because the cost had ballooned from an initial estimate of $800 million to the current figure of $2.25 billion.

On the current estimate, each of the two-and-a-half million meters to be installed around the state would cost consumers $900 each, which households and businesses would have to repay as well as meet the ongoing cost of operating them and their actual electricity bills.

тАЬHowever, this is only the beginning,тАЭ Mr Davis said. тАЬThe rollout was programmed over the next four years and in light of the blowout of almost three times in the cost at this early stage, further substantial increases could be expected before it is completed.

тАЬThe Government has put up the lame excuse that the need to explain the use of time-of-pricing тА" one of two main features of the new meters, along with the ability for electricity suppliers to issue more accurate accounts тА" to Victorians before it will be activated on the meters.

тАЬThe real reason is that it has taken fright at the soaring cost and does not want another myki-style controversy on its hands leading to the state election later in the year.

тАЬThe Government has clearly been caught out with the suddenly rocketing costs and forced into a hasty decision to declare a moratorium.тАЭ

Mr Davis said households would pay an additional $150 to $300 a year on their electricity bills to pay for the smart meters based on the present cost figure, but the end result would inevitably be much higher.

He said the Opposition saw the writing on the wall immediately the meter rollout began late last year and has been calling for it to be stopped pending a re-assessment.

тАЬThe concept behind smart meters is to provide a means for people to adjust their energy use to manage costs, but the Brumby GovernmentтАЩs approach to the scheme is producing a very costly result,тАЭ Mr Davis said.

The smart meters enable accurate measurement of a consumer's electricity use and total use across the national electricity grid. The present meters, which require manual reading, are generally read only once or twice a year for accurate measurement. Electricity accounts issued in the interim between the actual readings are estimates based on the readings.

Smart meters provide a wireless signal back to the power company, enabling it to issue precise accounts for each billing period. The meters take a reading each 30 minutes. This means that by checking the meter readings, customers are able to note the times they are using larger than normal amounts of power and take steps to reduce their use.

The office of the Energy and Water Ombudsman (Victoria) тА" www.ewov.vic.gov.au тА" is able to provide further information about the smart meters program and deal with any complaints relating to the installation or operation of the meters.

Source: http://gippsland.com/

Published by: kevin.balshaw@parliament.vic.gov.au

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