Electricity distributors’ smart meter audits 2020

We required all five Victorian electricity distributors to undergo independent audits to check whether they complied with the smart meter regulatory framework.

We required all five Victorian electricity distributors to undergo independent audits to check whether they complied with the smart meter regulatory framework.

Most Victorian electricity customers have paid for a smart meter. The smart meter regulatory framework exists to make sure the market and customers are realising the benefits from the smart meter roll out.

What was audited

We required auditors to examine distributors’ compliance with the smart meter regulatory framework during the 2018–19 financial year by asking:

Are electricity distributors’ smart meters performing to required standards?
Are electricity distributors making smart meter data available to customers so that they can get tailored offers from the Victorian Energy Compare website?
Do many Victorians still have their electricity usage estimated, now that smart meters have been rolled out?

This audit topic aligns with our 2019–20 compliance and enforcement priorities.

Who was audited

We required all five Victorian electricity distributors to undergo an independent audit:

Electricity distributor	Independent auditor
AusNet Services	Grant Thornton
Jemena	RSM
CitiPower	Deloitte
Powercor	Deloitte
United Energy	Deloitte

Key audit results

The auditors found distributors generally complied with the smart meter regulatory framework. This means:

Customers can see their electricity consumption and use it to compare energy plans available

Customers with smart meters can access data on their electricity usage from their distributor and upload this into the Victorian Energy Compare web tool to obtain electricity offers tailored to their usage patterns.

Over 99 per cent of Victorians were billed for what they used instead of having their electricity usage estimated

On average across the five electricity distribution zones, only 0.06 per cent of Victorians with smart meters had their usage estimated for 90 or more days during the 2018–19 financial year.

We also compared our audit results with more recent data from the Victorian Energy and Water Ombudsman. Their data showed that customer complaints about estimated electricity bills fell by 35 per cent in 2019–20 compared to 2018–19.

Relevant legislation

The smart meter regulatory framework comprises rules from ministerial orders in council made under the Electricity Industry Act 2000.

Purpose of audits

We audit energy businesses to check whether they are complying with the rules designed to protect consumers.

Audits provide us with a reasonable level of confidence that energy businesses have systems and processes in place to reduce their risk of breaching the rules.

Audits are not designed to detect and investigate breaches of the rules. If we detect problems, we may investigate further and take enforcement action such as penalty notices or undertakings.

Accessing smart meter data

If you cannot access your smart meter data, you should contact your distributor. You can also visit Estimating your electricity and gas bills for more information and resources.