Smart meters give households power to choose lower prices

The introduction of smart metering will give households a chance to benefit from the electricity market reforms of nearly 20 years ago – and use cheaper power when it is available.

Consumer New Zealand today said it worried that consumers, who will be able to choose peak and off peak tariffs because of the meters, might cut back on heating when prices are high and affect their wellbeing.

The New Zealand Business Council for Sustainable Development said today, however, that Consumer New Zealand appeared to be trying to “find the cloud in the silver lining”.

The new technology sends power use detail via a wireless modem, allowing remote meter readings and also helping consumers save energy and choose lower prices. The meters are being used by the Contact, Meridian and Mercury energy companies, and by Genesis from February 19.

Business Council Chief Executive Peter Neilson says smart meters will give households benefits which large businesses have had for years – to move energy use to times when prices are lower or other fuel is cheaper.

“It increases the reward for conservation and insulation. It will help avoid peaking problems which put up power prices. Income inadequacies are best deal with by adjusting pensions or family support, not by blocking new technology,” Mr Neilson says.

“For 20 years people have argued the electricity market hasn’t been working fully. One reason is that households can’t respond to short term price changes. This is one way for people to know what the current prices are – and make the changes.”