Electricity market review shows smart meters fail to reduce rising power bills

FIXED costs of electricity bills are going up despite promises that smart meters would see them drop, according to the latest review.

Opposition energy spokesman David Southwick said the rollout of smart meters had been a disaster.

FIXED costs of electricity bills are going up despite promises that smart meters would see them drop.

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More than a decade after the former Bracks Labor government promised its mandated $2.2 billion rollout of smart meters would reduce power costs, they were still adding to bills.

A review of electricity markets ­released last week said the “fixed charges” on household bills — the cost before a switch is flicked — were now as high as $489.

The review, headed by former Labor deputy premier John Thwaites and Coalition transport minister Terry Mulder, said this component of bills had risen faster than network costs.

“Although smart meter costs began to fall in 2016, this is not reflected in a reduction of total retailer fixed charges,” the report says.

Smart meters were meant to allow consumers to keep track of their energy usage so they could choose flexible pricing that to suit their needs.

But the take-up of flexible pricing options has been low and Victorians are still footing the installation bill.

Former Labor deputy premier John Thwaites.

The review also recommends the state government remove barriers to customers accessing smart meter data.

Opposition energy spokesman David Southwick said the rollout of smart meters had been a disaster.

“Smart meters need to work for Victorians to prevent power bills from soaring ever higher,” he said.

A spokesman for the Australian Energy Council said retailers risked losing customers if they did not pass on cost reductions.

“We support increased use of smart meters by customers and would welcome working with the Victoria Government to enable utilising this important technology,” he said.

Power company Origin said it had been keeping its prices lower than competitors to reflect the lower fixed metering costs.

Victorian Energy Minister Lily D’Ambrosio said: “We’re carefully considering the findings ... and will respond by the end of the year.”

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