The government’s legislation for the roll-out of smart meters has now been passed by the NSW Parliament.

The Electricity Supply Amendment (Advanced Meters) Bill 2016 incorporates changes to the arrangements for metering that are mainly as foreshadowed in the government’s discussion paper, which was released in late January of this year.

The Bill provides that a qualified electrician, licensed by NSW Fair Trading and engaged as a subcontractor to a metering provider, is authorised to install a smart meter after having met minimum conditions regarding safety.  This obviously differs from the current arrangements for types 5 and 6 metering where meter installers are selected from ASPs (accredited service providers).

When a customer chooses to have a smart meter installed, they will contact their electricity retailer, who will arrange for the installation.  Retailers will engage metering providers, who in turn will sub-contract appropriately qualified electricians.  The retailer will remain the primary contact for the customer.

This framework means that the metering provider and the retailer are responsible for the installation, maintenance and replacement of electricity meters. 

Given that the Bill will result in electricity meters now being regulated as electrical installations under the Electricity (Consumer Safety) Act 2004, metering providers and retailers will have to comply with this legislation.

Basic metering restricted to ASP 2s until 1 December 2017

The installation of basic meters (i.e. types 5 and 6 metering), as opposed to smart meters (type 4 metering), will continue to be restricted to ASP 2s until 1 December 2017.  From that time, type 5 and 6 meters can no longer be installed and all new and replacement meters must be type 4 smart meters.  Any licensed electrician engaged by a metering provider will be able to install these type 4 smart meters, subject to any minimum safety requirements that may be mandated by the Government. 

This transition period was not in the discussion paper; it was adopted in response to the advocacy of NECA and others.

Training requirements   

The Bill mandates that any person engaged to install smart meters must have undertaken appropriate training, including with respect to de-energisation and re-energisation of electrical installations.

The exact nature of this training will be determined prior to the implementation of the legislation.  However, we have been given to believe that it is likely that, as per NECA’s submission to the government:

• A level of training equivalent to that undertaken by ASP Level 2s with respect to metering will be required for all licensed electricians engaged in the roll-out of smart meters; and
• That ASP 2s will automatically qualify to conduct installations (but as a subcontractor of a meter provider, not in a direct contractual relationship with a customer).

Compliance regime

It appears likely that the government will establish an inspectorate team within NSW Fair Trading to ensure compliance with the new regulatory regime for smart meters.

Development of new standards for metering installations

NECA has been invited to participate in two committees in relation to metering installations:

• The NSW Department of Industry is producing a standard/code for the safe installation of electricity meters.  It is envisaged that while the standard/code will initially be voluntary, over time it will be made mandatory.  Once developed, this draft standard/code, which will be termed “safe installation of electricity meters” will be distributed to a sub-committee of the ISSC (Industry Safety Steering Committee).  Additionally, consultation with industry will be conducted; and
• A committee for the development of an Australian Standard for the installation of smart meters, which will consider a number of important metering issues including safety, tariffs and load control, testing, Australian community expectations, temperature ranges and other relevant issues.  The committee will ultimately work toward the development of a work program and priority list of new projects that will ensure that all Australian Standards for metering equipment are up to date and can facilitate integration into the smart grid.

We will endeavour to represent the interests of NECA members in the formulation of these standards.

Timing of the smart meters roll-out

The smart meters legislation will not come into effect until proclamation, which will occur when the government is satisfied that a sufficient level of readiness has been achieved for the roll-out to commence.   

We will keep members informed of developments regarding the roll-out and continue to advocate on behalf of members.

Should you have any feedback on smart meters, please contact Adam Spivakovsky, Policy Adviser on telephone: (02) 9021 9687 or email: adam.spivakovsky@neca.asn.au.