ACCC issues determinations on metering responsibilities in electricity retail markets

The Australian Competition and Consumer Commission today issued determinations on applications by the ACT and South Australian governments for authorisation of metering arrangements for domestic and small business electricity customers, an ACCC Commissioner, Mr Ed Willett, said today.

"The decision will increase competition in the provision of remotely read interval meters in the ACT and South Australia", he said. "This will ultimately enhance retailers' ability to offer different price and service packages to customers, including peak and off peak tariffs and time of use tariffs.

"Remotely read interval meters can be used to encourage demand side responses. At the moment, smaller electricity customers generally do not receive price signals to assist them in determining when to use electricity. Interval metering enables users to receive price signals for reduced consumption during peak periods.

"The decision encourages innovation in metering and will promote use of remotely read interval meters. It allows retailers to install remotely read interval meters that are suitable for smaller customers, if they consider they can provide these meters more cost effectively than the distribution company", Mr Willett said.

The ACT and South Australian governments each sought authorisation of arrangements that would enable electricity distributors to be exclusively responsible for the provision of metering services for accumulation meters, manually read interval meters, and data services for unmetered electricity supplies.

Interval meters record the consumption of electricity each half hour. This enables retailers to structure tariffs that more closely reflect the costs of purchasing power in the wholesale market, in which costs can vary on a half-hourly basis. Interval meters also facilitate more efficient pricing signals for distribution and transmission.

Copies of the determinations will be available on the ACCC's website.