Smart Meters in Strata Scheme: Frequently Asked Questions
In recent years, the options for electricity supply in strata schemes, including installation and how costs are divided, have changed significantly.
Since late 2017, the Australian Government has implemented electricity industry-wide reforms enabling energy suppliers to install their own meters, which previously could only be done by Ausgrid.
Now, energy suppliers Australia-wide are calling for the installation of smart meters. To help you understand what this change could mean for your strata scheme, we answer some frequently asked questions about smart meters.
The ‘Power of Choice’
So, what’s changed? The ‘Power of Choice’ reforms were introduced by the Australian Energy Market Commission (AEMC) on 1 December 2017.
The reforms were first initiated in Victoria and strata schemes throughout New South Wales can expect them to become more common here.
The major change that we’re discussing today is the push by industry to smart meters, which have pro’s and con’s for strata schemes.
What is a Smart Meter?
A smart meter is an electricity meter that has improved wireless capabilities over old-style electricity meters.
Smart meters send the following usage information wirelessly to the supplier:
- How much electricity is used and when in an individual property,
- What is using the electricity in an individual property, and
- Notification of any faults.
They also allow the supplier to switch the electricity supply on and off remotely. All the above removes the need for on-site reads, saving money.
Smart meters are being progressively rolled out to replace old-style meters until they are uniformly used across Australia.
How Will the Reforms Impact My Strata Scheme?
There are additional costs for lot owners which need to be considered when installing smart meters in strata schemes.
In most cases, smart meters will be installed as and when old-style meters become faulty.
However, identifying a faulty meter is a complex task as many NSW strata schemes have service fuses that connect several meters and sometimes all of them within the building.
The solution for lot owners is to engage a Level 2 Electrician to install a meter protection device (MPD) to their own meter at their own cost
What is a Meter Protection Device (MPD)?
According to Real Electrical Solutions, a meter protection device is a fuse device which is located on the un-metered side of the meter installation.
“The primary function of an MPD is to provide an authorised individual point of isolation, meter protection and to facilitate the safe replacement of metering equipment.”
What Does Switching to a Smart Meter Cost?
The cost to install or upgrade to a smart meter is worn by the energy supplier. However, in situations where an individual meter needs to be isolated, there are significant costs which are passed on to lot owners.
Lot owners can expect charges between $500-600 per MPD installation. In strata schemes, the power needs to be switched off for the entire complex to complete one installation, causing added disruption.
Unfortunately, the Federal Legislation mandating the switch to smart meters for any new or replacement electricity meters means that strata schemes, including those in NSW, have little recourse but to upgrade.
It is recommended that NSW strata schemes consider having all works completed at once to minimise costs and disruptions.
Where Can I Find More Information?
There are a number of resources that you can access online, including:
- Choice – How do smart meters work and can they save you money?
- NSW Government – You and energy providers
- AEMC – Meters are your retailer’s responsibility