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A guide to smart meters and how you can use them for cheaper electricity bills
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Authors
University of Wollongong in 2009.
This guide is a collaboration between Bundl employees Jon Rout and Jason Scott. Jon has written various articles on smart meters and other electricity related subjects. Jason does most of the blogging for Bundl and also manages various content projects. Both Jon and Jason graduated with degrees from the
Contents What is a smart meter anyway? ..................................... 4 Do we need smart meters? ..................................... 6
Why are (some) people so opposed to smart meters? ..... 8 Smart meters in Victoria Smart meters in NSW .....................................11 .....................................16
How to reduce your electricity bill .....................................18 The future of smart meters .................................... 26
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A smart meter is an electrical device that tracks energy usage and sends these readings directly to your energy supplier. Smart meters are a replacement for the old manual meters and are available for both gas and electricity. They also go by the name of interval meters. A smart meter acts as a communication device between your household and the main database of your energy supplier. Every 30 minutes it measures and records the amount of energy used by your house or business. This information is then sent directly your electricity distributors over wireless networks, eliminating the need for someone to come and physically check your meter every month. Recording how much electricity is being used and exactly when it is being used opens up a whole range of opportunities to better monitor and manage how we use our energy resources. For the individual consumer, smart meters will eliminate the need for some bills to be estimated in advance and adjusted the following month. In the case of a power outage, meters will alert your supplier in real time of your need for a solution. They make waiting a few days for an installer to reconnect the power when you move house a thing of the past! All smart meters are controlled remotely and can be turned on and off or switched to a different account within a matter of minutes. On a larger scale, the additional information provided by all the data from users around the world empowers providers and consumers to use power sources more efficiently. Read on to find out how.
A typical smart meter. Different models are used around the world. Image from aaron_anderer
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Smart meters are being installed in homes right across Australia and the world with the US, Canada and most countries in Europe rolling out some planned installation of them in homes and businesses. What, exactly, is the big deal about these smart meters? Peak Demand Seasons of extreme weather patterns, like the heat of summer and the cold of winter, generate surges of electricity usage. To keep up with demand and provide the energy when it is needed, suppliers must spend large amounts of money on network infrastructure. In fact, at least half of all electricity bills go to infrastructure expenditures; maintaining power lines, connecting distribution grids and expanding services to new households. If we continue our current usage patterns, as the population continues to grow, infrastructure costs are going to get higher and higher. The costs of these upgrades would inevitably be passed onto consumers. Providing incentives to spread power use more evenly throughout the day reduces the need for these expensive infrastructure upgrades. Flexible Pricing / Time Of Use Tariffs To tackle the problem of peak usage, smart meters allow the introduction of flexible pricing, otherwise known as Time Of Use (ToU) Tariffs. Flexible pricing means that the cost of electricity changes depending on the time of day it is being used. For example, electricity used in peak hours 7am 9am will be more expensive than electricity used in the middle of the day. There are usually three time periods in flexible pricing, although some retailers are only utilizing Peak and Off Peak periods. You will need to check with your electricity retailer on the specific times for your area, but the following is a rough guide: Peak: Highest prices when most people are using energy, typically between 7am 9am and 5pm 8pm. Shoulder: Time period between the two peak periods, typically during the day (9am 5pm) Off Peak: Night-time when most people are asleep and not much energy is being used (8pm 7am) Check out Part 6 for tips on using the flexible pricing option to save money on your yearly electricity bill!
Example of a flexible pricing plan showing different times. From the VIC switchon website.
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HENDIT lAMET VE
The mandatory installation of smart meters in the majority of homes and businesses in Australia has been one of the most controversial topics in the past decade. The issues behind the most vocal concerns against smart meters are debated strongly from both sides. Here we give you an overview of the concerns and the official responses. Our aim is to empower you to make a decision about your and your familys well being for yourself.
The response
Switching to flexible pricing is optional. A Deloitte report suggests that changes to the average consumers bills, providing there is no change in usage behaviour, would range from a reduction of 4% to an increase of 2%. Allowing the consumer to make the decision about what works best for them in their particular situation should reward households that can shift their behaviour without penalising those that cant.
The response
The cost to install a new smart meter in your house will be recouped the same way the cost of other infrastructure is; from your electricity supplier through your bills. Most retailers are including the cost as an additional line item on your bill or bundling it into a supply charge to spread out the cost over a long time period. Check the FAQs section of your suppliers website for the cost being charged to you if it isnt clear. Whether or not the implementation of a smart meter leaves the consumer better or worse off financially is dependent on the individuals consumption habits. Check out Part 6 for tips on how to take advantage of the flexible pricing option for lower electricity bills.
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The companies responsible for rolling out the installations are the five energy distributors in Victoria; Citipower, Powercor, Jemena, United Energy and SP AusNet. Electricity retailers have been given rights to on charge consumers the costs of installing and maintaining the smart meters.
1 http://www.dpi.vic.gov.au/smart-meters/resources/reports-and-consultations/advanced-metering-infrastructure-cost-benefit-analysis/2.-background 2 http://www.dpi.vic.gov.au/__data/assets/image/0005/136076/fig6b-regulatory-targets.jpg
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Consumers have always paid an amount towards installation and maintenance of their meters. Replacing every single meter with a new smart one incurs additional costs and it is this cost that is being recouped through users bills. To keep costs fair and as low as possible, they are being recovered from all customers over the same period of time, regardless of whether a smart meter has been installed or not. The alternative, of billing street by street, is more expensive for everyone involved. Charges are regulated by the Australian Energy Regulator. These charges have been a part of your electricity bill since January 2010.
Monitoring usage
Every 30 minutes your smart meter is sending information about your energy consumption to a central database maintained by your energy retailer. You can access this data and see your households energy consumption patterns through online portals. At the time of writing, the following retailers had fully operational web portals or announced the launch of web portals for customers to check their energy usage: AGL Energy - My AGL IQ1 Origin Energy - Origin Smart2 Energy Australia (previously Tru Energy) - eWise3 The following distributors have web portals for use with smart meters: Jemena Electricity (North Western Melbourne) - Electricity Outlook4 United Energy (South East Melbourne & Mornington Peninsula) - Energy Easy5 SP Ausnet (Northern and Eastern Victoria) - MyHomeEnergy6
VIC
Powercor
SP AusNet
Jemena
Citipower
United Energy
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Why use an online portal? 1. See your energy usage If youve ever wondered whether having that heater on all evening cost you a lot in your energy bills, now you can find out. You may be surprised at how much energy is used by your household and when! 2. Compare your usage to other households Most web portals offer a service that allows you to compare the amount of energy your home is using to similar homes. This will give you an idea of whether you have room for improvement in the way your household uses energy. 3. Make decisions to reduce your energy bill Armed with the information about what your energy use, you can make decisions about how to use it in the future, potentially saving you money and lowering your energy consumption. 4. Set and track energy savings goals Some portals have included an energy saving goal feature, letting you track how much electricity, dollars and greenhouse gas emissions you have saved when compared with previous usage.
A review of the privacy program by Lockstep Consulting showed that no information from the smart meters had been given out illegally. It confirmed that controls over the data are strong and the technology used by the smart meters is secure. The wireless links between the devices and networks are encrypted and do not use the internet
http://www.dpi.vic.gov.au/smart-meters/privacy
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Rollout
The NSW Government has recognized the future benefit of smart meters and wants to roll out more. However, wary of the controversy surrounding the Victorian mandated roll out, particularly the cost blowouts, they are taking some time to work out the best plan of attack. So far, recommendations have been to keep it market-led (not compulsory) and focussed on what will provide the consumer the most benefit.3
Lorem Ipsum 1. Consumers should not pay higher charges for smart meters;
2. A Government mandated rollout should be avoided; City, St 00000
3. The government has a role in promoting consumer acceptance; 4. The rollout of smart meters and time of use prices are not in themselves sufficient to drive significant demand reductions.4
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Over past few years, the average Australian household saw increases in electricity bills from between 15% to 50%. These extra costs are hurting consumer pockets and making everyone reconsider how much electricity they use on a daily basis.
If youre like most people, youre only vaguely aware of how much energy has been used until the bills arrive! With the introduction of smart meters and the availability of online portals for real-time reports, its a good idea to make a habit of checking your electricity consumption once a week. Some portals will send you an email with an update to help you stay on top of it. If the internet isnt your thing, or you want immediate (rather than daily) information, you may want to consider investing in an In Home Display (IHD). These are small, portable, wireless devices that read information from the smart meter and feed it back to you instantly via a small screen. Check Part 7 for more information. Now that youre armed with the information of how much energy is costing you, lets take a look at how you can reduce it. Of course, there are some things we know may use up a lot of energy (like air con on a boiling hot day or a 50 inch plasma screen to watch the Boxing Day match) that we just cant bear to give up! Thats okay. You can still save money by making small changes in a) how much electricity you use and b) when you use your electricity (if you are on a smart meter flexible pricing plan).
1 http://bundl.com.au/blog/the-rise-of-the-electricity-bill-infographic/
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The regular daily cycle peaks in the morning as everyone gets up for work, drops throughout the day as we go about our business and then peaks again for dinner and bedtime. The night as every one sleeps is off peak period when not much electricity is used. Although this is a more complicated system than the flat rate method, the key to using your smart meter to save money on your power bills is to time the use of electrical devices during off peak periods when possible.
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Air Conditioners
If you have a set system, time the air conditioner to do the major part of cooling down the house in the off-peak period (for example, from 4:30pm 5pm before you get home) or in the hour before you wake up. Particularly in the morning if you are only in the house for an hour before leaving for work, setting the air conditioner to cool the place from 6am 7am before you get up will, in most warm temperatures, keep the place cool until you leave the house.
Pool Pumps
Contrary to popular belief pool pumps do not need to be on 24/7. In fact, they can do a good job of keeping your pool clean by running as little as 6-8 hours day. This is a great opportunity to take advantage of the off-peak electrical prices. Turn the pool pump on before you go to bed and turn it off when you get up in the morning.
10 Days!
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On these critical peak days, the charges increase significantly during a 6 hour period, with some plans costing thirteen times more than the usual rate. Critical Peak Days are advised 24 hours in advance through a chosen method of communication (email, sms or phone call). If you have difficulty regularly changing your routine but could get out of the house and head to, say, a friends place or a pool for 6 hours at a days notice, this could be your solution. Remember though, you will be charged a very high rate for any electricity going into your house during those hours, including the electricity keeping the refrigerator running or alarm systems charged. If a Critical Peak Day happens to fall while you are on holiday, it may be difficult to modify the amount of electricity being consumed by your house.
Hot water
Hot water accounts for around a third of all electricity consumed in the home. Decreasing your hot water usage is the best way to decrease your electricity bill. easy tip
An unrated old school showerhead uses upward of 25-30 litres of water per minute. A new WELS 3 star rated showerhead commonly uses 9 litres of water per minute. But why stop there; showerheads of 5-6 litres of water per minute will get the job done for most. Give it two or three days and most people find that they cant remember what their old water guzzling showerhead felt like. If you cant quite stomach a 5L/min showerhead for your bathroom, install it in the kids or second bathroom. easy tip
Cost to implement = free, money saved on electricity bill = $100/year 4 minutes is enough for a proper shower, especially if youre not washing your hair ladies. It can seem like time just slips away from you though so a great investment is an egg timer or specific shower time for $5 so you, and your family, can stick to getting in and getting out.
Shorter showers
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easy tip
Cost to implement = free, money saved on electricity bill = $75/year Switching to cold water when washing clothes will decrease your electricity costs of your washing machine by 80-90%. The less energy efficient your machine is, the more electricity you will save by only using cold water. Only use warm water on particularly dirty and oily clothes. hard tip
Cost to implement = $5000, money saved on electricity bill = $400/year Reduce your hot water electricity costs by up to 75% by switching to a solar hot water system. Many factors will determine which system is best for you so ensure you do your research beforehand. You may still be eligible to receive Small-Scale Technology Certificates (STCs) and possibly state and local government rebates for upgrading to a solar system. Check out http://www.hotwaterrebate.com.au.
Cost to implement = Dependent, money saved on electricity bill = $100/year A TV with a 5 star label uses nearly twice the energy of a TV with a 9 star label. Over the period of 10 years the savings can add up to the same cost as purchasing it. This also applies to your refrigerator, washing machine and dishwasher. When it comes times to replacing your appliances, your wallet will eventually benefit from choosing one with a higher energy efficiency rating. easy tip
That old beer fridge in your garage could be costing you as much as $265 a year all by itself! Consider asking Fridge Buy Back to give you money for it instead. easy tip
Cost to implement = Free, money saved on electricity bill = $100/year Items like your television and microwave consume power even when theyre not being used. Switching them off at the wall can save you up to $100 a year on electricity bills. Standby power controllers can do this for you automatically, and they are free if you live in Victoria.1
1 https://www.veet.vic.gov.au/Public/Public.aspx?id=VEETActivities
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hard tip
For an average home, keep a pool clean can account for up to 30 per cent of an energy bill! Sometimes this is more than the energy your washing machine, clothes dryer and dishwasher use combined. Start by choosing the most energy efficient pool pump and check with the specialists to ensure you have the right size and model.
Cost to implement = free, money saved on electricity bill = $50/year You can reduce heat loss in winter by 40% and reduce heat gain in summer by 15% simply by closing your curtains. Dont forget to open your curtains on those rare warm and sunny winter days to capture as much heat as you can. easy tip
Many people can get away with just using several mechanical fans throughout most of summer. Fans dont actually decrease the temperature inside the room; the cooling effect comes from air moving over your body. Create an airflow by opening windows and doors easy tip
Keep your thermostat between 18-21 degrees C in winter. Put on a pair of socks and add an extra blanket over your bed to keep warm at night. Every degree that you increase your thermostat can result in a 15% increase in heating costs. hard tip
Cost to implement = $1200, money saved on electricity bill = $200/year While the Federal Governments implementation of the insulation scheme could have been handled better, there are significant benefits to insulating your house. Insulating your ceiling can save you 40% off your heating and cooling costs. Remember to choose insulation with an appropriate R- value (higher = better) for your surroundings. More information on choosing the right insulation can be found at the yourhome website.1
1 http://www.yourhome.gov.au/technical/fs47.html
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These may seem like small changes but when added up together they can make a big difference at the end of the day. Before we move on, heres a step-by-step plan to ensure you are getting the best price on your electricity bills.
Summary to getting the cheapest price under the new pricing system
1. Smart meter is installed; 2. Familiarise yourself with your current providers flexible energy rates, off peak, peak and shoulder; 3. Identify high energy use appliances in your house that can be shifted to cheaper time periods; 4. Make any changes to your energy consumption habits that you and your family can make to take advantage of these time periods; 5. Allow one or two months of data about your energy consumption to be collected; 6. Use the data about your new energy consumption habits to compare and choose the best retailer and plan for you.
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Thermostats
It is already possible to control some appliances such as air conditioners and heating systems via IHDs. Take down the brand and model information before heading out to check with your technology retailer about options suitable for you.
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http://www.smartgridnews.com/artman/publish/Technologies_Home_Area_Networks/ http://jemena.com.au/customer/electricity/smart-meters/portal/
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