New AEMC consumer protections for smart meters welcomed by SACOSS
The South Australian Council of Social Service (SACOSS) welcomed moves by the Australian Energy Market Commission (AEMC) to increase protections for future SA smart meter households. But it’s clear more must be done to protect low-income SA smart meter households currently facing time of use (or so-called ‘surge’) tariffs.
All consumers in the National Electricity Market (which includes South Australia) will be moved onto smart meters by 2030.
Under the new AEMC ruling, consumers receiving a smart meter upgrade can only be switched over to new tariff structures if the retailer obtains the customer’s explicit informed consent. Currently retailers can impose these new tariffs without a customer’s consent. However, the ruling does not apply to households that already have smart meters. In addition, the period of time before retailers can switch consumers over to the new tariffs has now been reduced from a proposed three years down to two.
This new ruling also means AEMC will require retailers to offer a flat rate standing offer as an option for households that cannot respond to time of use pricing. Moreover, standing offers, although capped by the Australian Energy Regulator (AER), are generally more expensive than market offers, and retailers have already removed flat rate market offers for existing smart meter customers. SACOSS believes both new and existing smart meter customers should be able to access the new flat rate standing offers.
Quotes attributable to Ross Womersley, SACOSS CEO
We welcome any initiative that increases consumer protections around smart meters. We’ve been advocating for many years that the smart meter rollout was not being planned or executed appropriately, and today’s ruling is definitely a step in the right direction.
Up until now, consumers had very little agency: you got a smart meter whether you wanted it or not, and you were placed on these time of use, or surge, tariffs by retailers whether you wanted them or not.
It was left up to the consumer to understand what was going on – and the first indication consumers often got was one of shock when they received their first bill after a smart meter was installed. They found that they had been placed, without their consent, on a whole new regime of ‘time-of-use’ charging that had not been communicated or explained.
It’s particularly devastating for energy consumers on lower incomes. Energy is an essential service and going without it is not an option for anyone. But now South Australian households on lower incomes who have been placed on smart meters are faced with impossible decisions: trying to shift their energy usage behaviour to some imaginary ideal or choosing between other essentials such as food or medicine in order to pay their energy bills.