Rollout of Advanced Metering Infrastructure (smart meters)

In 2006, the Victorian Government decided to roll out advanced metering infrastructure (AMI) or ‘smart meters’ to all Victorian residential and small business electricity customers. The regulatory arrangements relating to the roll out are set out in a November 2008 Order in Council (OIC) made under the Electricity Industry Act 2000 (Vic). The OIC prescribes the time frame for the roll out, as well as the new regulatory framework and the AER’s responsibilities associated with the AMI roll out.

The ESCV published a consultation paper on the framework and approach for the AMI roll out, prior to the handover of regulatory functions to the AER. The consultation paper is available on the ESCV website. From 1 January 2009, the AER assumed responsibility for finalising the framework and approach process, including considering and addressing stakeholder submissions, and publishing a framework and approach paper.

The AER will be responsible for decisions made under the OIC from 1 January 2009 to 31 December 2015, after which AMI will be regulated by the AER under the National Electricity Rules (NER).

The AER’s primary function under the OIC is to review and approve budgets and charges for the AMI roll out in accordance with the requirements of the OIC.

This involves AER consideration of, among other things, whether Victorian DNSPs have undertaken competitive tender processes for the AMI roll out and whether the activities to be undertaken are within the scope specified by the Victorian Government.

Further information about the regulation of AMI is available at the Victorian AMI cost recovery page.