Monday, 19 May 2014

Smart metering is going to hurt


Smart metering is going to hurt

 By Jack Ward, MD of Powermode

Smart metering is on the way, so are higher electricity bills – much higher. Just lately, we have seen the pace of smart meter deployment increasing in most municipalities. 

This the start of the long-awaited roll-out of smart metering of electricity that was legislated some years back. After initial delays the roll-out is now set to take off. 

This means that every old-style meter (round rotating disc type) is set to be replaced by digital smart meters. This was due to implemented by 2011 but due to administrative delays in tendering (read corruption, etc) in various municipalities the roll-out is only taking off now. 

The major motivation behind this is to introduce time-of-day (ToD) billing.  This means you will a pay different rate for electricity during peak and off-peak periods – which is fair enough.  This is, after all, how Eskom bills your municipality.  You can expect to pay as much as six to 10 times during peak period than off-peak. 

What isn’t fair is that sneaky levies and demand charges and the like can now be added to your bill at a drop of a hat.

It’s no secret that electricity revenues cross-subsidise other sources of revenue in most municipalities.  Electricity is seen as the cash cow.
 
So what to do? Well, it’s simple; reduce your dependency on the grid by deploying a roof-top solar PV system as many consumers have already done.

What’s different now is that solar PV energy is about to become a lot more affordable – compared to your ToD electricity bill, that is.


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