Meter fee hits households
Replacement cost wipes out savings
HOUSEHOLDS forced to install new compulsory smart meters will be hit with more than $100-a-year in additional fees on their electricity bills.
The new fees, which are three times the cost of those applied to the old-style accumulation meters, were revealed in the Queensland Competition Authority’s draft determination on regional power prices.
The determination forecast a slight decline in regional power prices in 2018-19 after State-owned generators were ordered to halt practices that substantially drove up wholesale energy costs and delivered windfall profits to the Palaszczuk Government.
However, the predicted savings of $35 a year will be wiped out for families that move into new homes or those that require a replacement meter.
Smart meters, which give power companies the ability to remotely connect, read and control electricity use, were made compulsory in Australia from December 1.
The QCA has recommended households on tariff 11 should pay 27.590 cents a day if they have a smart meter, about $100 a year, compared to 9.481 cents for those with an accumulation meter.
The charge will jump to 46 cents a day for households with smart meters that continue to be manually read by their energy company.
Government-owned distributor Energy Queensland had pushed for smart meter fees to be kept in line with the costs of the older meters but the QCA has recommended against the proposal.
“We have considered Energy Queensland’s suggestion that advanced digital metering costs be based on the significantly lower costs of accumulation meters for the first two years before moving to full cost recovery from 2020–21,” the QCA said.
“However, the QCA is very concerned that this could lead to customers choosing to install an advanced digital meter without full knowledge of the true costs they will face for doing so in future years.”
Energy Minister Anthony Lynham insisted households with smart meters could save $200 a year as he credited government policies for lowering power prices.
“People can save if they have a smart meter. It’s a positive,” he said.
Opposition Leader Deb Frecklington said Queensland continued to be ripped off by high electricity prices.