Need to know
- It's generally accepted that smart meters are needed for a modern energy system, but some retailers have taken financial advantage of the mandatory rollout
- As of 1 June 2025, energy customers will putatively no longer be able to opt out of having a smart meter installed, but some retailers are more flexible than others
- The Australian Energy Market Commission says it's up to retailers to comply with the opt-out deadline in a way that works best for their customers
Tracy came home one recent morning and was surprised to find an electrician parked in her driveway. As the strata secretary of her building in Sydney, she asked the tradesperson what he was up to. He told her he was upgrading the energy meter for a unit that was empty.
"The electrician said Unit 6 had let them into the building and they had a work order and were allowed to replace the meter. I established that no one was home or living in Unit 6 to let him in, and asked them to postpone the job until it could be confirmed with the owner."
Metering companies in NSW are third-party operators hired by energy retailers, so it wouldn't be unusual for such a technician to show up out of the blue to get the job done.
It's a scenario that's likely to be played out in the coming months at properties across Queensland, New South Wales, the ACT, Victoria, South Australia and Tasmania – which make up the National Energy Market (NEM).
Smart meter rollout is mandatory
In November last year, the Australian Energy Market Commission (AEMC) announced that it aims to have every property that's connected to the NEM hooked up to a smart meter by 2030.
''Smart meters provide the digital foundation needed for a modern, connected and efficient energy system," AEMC chair Anna Collyer tells CHOICE. "The technology facilitates benefits, not only for individual customers, but for all customers, across the system."
The technology facilitates benefits, not only for individual customers, but for all customers, across the system
AEMC chair Anna Collyer
According to the AEMC, the benefits include greater flexibility in the use of household technologies, such as solar power, and a reliable data flow between customers and energy retailers that allows networks to better manage their systems, thereby reducing customer costs.
The smart meter rollout is mandatory, and CHOICE has heard from a number of energy customers who are not happy about having no choice.
Opt-out ends in June
Technological advantages aside, customers have legitimate cause for concern when it comes to smart meters. Many of the more than 7 million energy customers who have already had smart meters installed have been blindsided by new charges on their bill, in particular controversial demand charges.
And third-party metering companies in NSW have a poor track record of providing meter data to the retailers that hired them.
In February, a spokesperson from the Electricity and Water Ombudsman NSW (EWON) told CHOICE, "in the course of investigating customer complaints, it has become apparent to EWON that some retailers are having trouble gaining access to their customers' metering data from metering data providers", adding that "even though these metering entities have a vital role in the customer experience, the customer has no direct relationship with them".
Earlier this year, Collyer told us that the regulator had "heard clear concerns from stakeholders about unexpected retail tariff changes after smart meter installations".
Retailers will have six months to continue adding new charges without consent
In response, AEMC enacted a new rule to prevent this, prohibiting retailers from adding new charges without the customer's consent for two years after a smart meter has been installed. But the all-important caveat is that these protections don't come into place until December 2025.
The timing is important given another AEMC ruling that received less notice: As of 1 June 2025, energy customers will no longer be able to opt out of having a smart meter installed.
That means retailers will have six months to continue adding new charges without consent.
Some retailers letting customers defer
But there is some grey area. Energy customer Alan got in touch with CHOICE in March after Ergon contacted him about upgrading to a smart meter.
"I first phoned the company to register my request for deferment but later I received an email giving me the time when the new smart meter would be fitted," Alan says.
He pressed forward with his request and eventually talked to an Ergon rep on the phone.
"I was told that I would have to change by 2030 anyway, but I said that that was five years away and I didn't want a smart meter for as long as possible."
We also heard from an AGL customer who was able to opt out.
Retailers have compliance discretion
But other retailers haven't shown such flexibility. Thomas, who also got in touch in March, was notified by Alinta Energy that it was time for a meter upgrade.
"I received a letter from Alinta in January that informed me they intended to upgrade my existing meter to a new smart meter. Included in the letter was an opt-out with a link to an online form. After speaking to my son, who is an electrical technician, we proceeded to opt out."
Alinta then informed Thomas that it would be enforcing the AEMC's no opt-out after 1 June rule. But it seems the regulator's ruling is not iron-clad.
"As with any rule change the AEMC completes, it is up to retailers to comply with these rules in a way that works best for their customers," Collyer says. "If customers are dissatisfied with their retailer's approach, we encourage them to compare offers available from other retailers."
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Stock images: Getty, unless otherwise stated.
