Digital smart meters will become mandatory across Australian following a ruling by the AEMC. Casey McGuire finds out more.

Gone are the days of having to measure dials on an electricity meter. Smart meters are now mandatory, as they reduce installation barriers, have new customer safeguards to prevent upfront costs, improve meter testing and inspection requirements and improve customer experiences.

The rule change is the result of four years of the Australian Energy Market Commission (AEMC) research which started with the Commission’s self-initiated Review of the Regulatory Framework for Metering Services in December 2020.

The final rules of the reform are an accelerated deployment of smart meters to cost save and support modern data-enabled energy systems and better network access to power high-calibre data for network management.

Customers can’t be moved to a new tariff without supplying explicit informed consent under the new customer safeguard, protecting end users for a two-year period after installation. After the two-year period, retailers wanting to change a customer’s tariff must provide them with historical bill comparisons to indicate what their bills would have been under new tariffs.

“We conducted extensive consultation to get these reforms right,” AEMC chair Anna Collyer says.

“After hearing stakeholder concerns about consumer impacts, we strengthened protections around tariff changes while maintaining an ambitious but achievable 2030 target.”

One of the major reasons the AEMC has made the change is so the transition to renewable energy is quick in an efficient manner. Smart meters provide households and businesses energy consumption data in real-time to make informed decisions on their energy usage.

“Smart meters are the digital foundation needed for a modern, connected and efficient energy system. This reform will help households and businesses increasingly interact with the grid and energy markets as we support the cost-effective decarbonisation of the energy system,” Anna says.

The accelerated rollout will make sustainable work opportunities for qualified electricians from 2030. The Legacy Meter Replacement Plan approach needs distribution network business to think about workforce planning and labour market conditions for electricians. This includes using local workforces to an extent that avoids creating boom-bust cycles.

The legacy meter is an older and outdated electric or gas meter that is not a smart meter which is what is being implemented. Legacy meters measure electricity consumption through a rotating dial which needs to be manually noted to calculate the home owner’s energy bill. To coincide with the rollout, electricians can add ‘changing meters’ to add another string to their bow to make sure the house is up to date with the Legacy Meter Replacement Plan.

“The accelerated rollout will get more smart meters installed faster, so customers can access their benefits sooner,” Anna says.

“These include better information about energy use, more accurate billing and access to new retail service options. Importantly, we’ve also introduced strong consumer protections, including prohibiting any upfront costs and requiring explicit consent for tariff changes in the first two years after installation.”

Other changes to the rules are to improve the regulatory framework for metering, but the focus is on accelerating the rollout of smart meters by 2030. The AEMC advises electricians to stay informed through industry bodies about training requirements and opportunities that are related to smart meter installation.

They also recommend that electricians should continue engaging with metering providers about how they will be impacted by the changes.

The rollout is a chance for qualified electricians to develop knowledge and an expertise in smart meter technology and installation. The mandate requires universal smart deter deployment across the NEM by 2030 which covers both existing meters and new installations.

The new reforms will be implemented between December 2024 and July 2026 with an accelerated rollout starting in December 2025.

“After four years of detailed work and consultation, we have delivered a framework that will accelerate smart meter deployment while ensuring strong consumer protections and choice,” Anna explains

“This is critical for unlocking the benefits of Australia’s world-leading uptake of consumer energy resources.”