Unnecessary smart meters add to customer costs

The Gillard Government’s obsession with electricity smart meters could add an average of upwards of $500 to Queensland households, despite the availability of cheaper technology that can deliver tariff reforms.

Energy Minister Mark McArdle said time of use pricing, which would deliver significant savings to households, could be obtained by the current second generation electronic interval meters currently being installed across Queensland.

Mr McArdle said the second generation meters could be installed at a fraction of the cost of smart meters and achieve the time of use pricing capacity being sought by the Commonwealth. Already more than 500,000 second generation meters have been installed in homes across Queensland in the past 10 years.

“Smart meters will only be used by a small group of tech-savvy consumers who want to engage with this new technology,” he said.

“Most customers will never use this technology yet they will be forced to pay for it by the Commonwealth.

“In the case of Victoria, the entire state has had smart meters imposed on it and they are not well used and have added to already higher electricity rates in that State compared to Queensland.”

Mr McArdle said that in 2009 the estimated price tag for smart meters in Queensland was in excess of $1billion, including the purchase of the meters and the installation costs for regional and remote areas of the state and the complex support needed to transmit and relay information from the meters.

“The recent Commonwealth Energy White Paper loudly advocated smart meters but was silent on the costs,” he said.

“You cannot trust the Gillard Government to reduce electricity prices.”

Mr McArdle said the Prime Minister advocated green energy schemes, the carbon tax and now smart meters which all added to electricity costs, yet never addressed how much they added to bills.

“This is Labor’s record after five years in government,” he said.

“In contrast, after just eight months in government, the Newman Government has put Queenslanders first by freezing the standard domestic tariff and is the first state government to seriously address the cost burden of “poles and wires” on electricity bills.”

Mr McArdle said he would insist on increased transparency from the Federal Government and all its proposals be fully costed at tomorrow’s Standing Council on Energy and Resource meeting.

[ENDS] 22 November 2012

Media contact: Minister’s Office 07 3896 3690 /0417 277 905