Smart-er metering policy: Getting the framework right for a consumer-focused smart meter rollout

.............................................................................................................................................................. 3 Executive summary ............................................................................................................................................ 3 Introduction .................................................................................................................................................... 3 The AEMC roll out and claimed consumer benefits ....................................................................................... 4 Different approaches to smart meter roll outs .............................................................................................. 5 Providing consumers with appropriate and useful information .................................................................. 8 Getting all consumers connected – the uneven patchwork of smart meters .............................................. 9 Protecting vulnerable consumers connected in the emerging smart meter market ................................ 10 Industry incentives and cost recovery ......................................................................................................... 11 Monitoring new markets .............................................................................................................................. 12 Main report ........................................................................................................................................................ 13 Introduction .................................................................................................................................................. 13 What is a smart meter? ................................................................................................................................. 14 Smart meter specifications .......................................................................................................................... 16 Different models for smart meter rollouts ................................................................................................... 18 Key roles and responsibilities in the AEMC hybrid market led/mandated retailer rollout ........................ 20 Consumer benefits and the AEMC hybrid market led/mandated retailer rollout ...................................... 21 Assessment of consumer benefits of the minimum services ...................................................................... 21 Consumer incentives and risks .................................................................................................................... 28 Analysis of the AEMC hybrid market led/mandated retailer rollout ........................................................... 30 Retailer incentives ........................................................................................................................................ 32 Metering coordinator incentives and risks .................................................................................................. 34 DNSP incentives and risks ............................................................................................................................ 35 Actions needed to drive greater consumer benefits from the AEMC retailer-led roll out .......................... 35 Conclusions and next steps .......................................................................................................................... 42 Glossary ......................................................................................................................................................... 43 Acknowledgements ...................................................................................................................................... 43 References ..................................................................................................................................................... 44 Authors .......................................................................................................................................................... 44