Lotu-Iiga Peseta Sam: Smart Meters (Consumer Choice) Bill — First Reading 
Lotu-Iiga Peseta Sam: Smart Meters (Consumer Choice) Bill — First Reading 
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PESETA SAM LOTU-IIGA (National—Maungakiekie) 
: 
 I rise to speak on the Smart Meters (Consumer Choice) Bill introduced by my colleague the Green list MP David Clendon. I acknowledge his knowledge in this area. The Commerce Committee heard from the Parliamentary Commissioner for the Environment and various other submitters on this very subject. Obviously the bill’s aim is to give effect to some of the recommendations that the Parliamentary Commissioner for the Environment stated in her report. I must say up front that National will be voting against the first reading of this bill. “Advanced” meters I think is the proper term that should be applied to this because there are very few smart meters out there—not just in New Zealand but across the world. Smart meters communicate with appliances in a really advanced way. 
In terms of the development of the technology advanced meters have changed electricity meters into complex systems. These systems are able to measure and record electricity consumption in almost real time. It makes that information available to the electricity market its participants and most important its consumers. The benefits have already been espoused by previous speakers. Obviously it allows retailers to remotely read meters without needing to physically access consumers’ properties. It provides consumers with accurate monthly invoices not just guesstimates of what their bills will be. It also enables faster switching between retailers reducing the barrier to entry for new-entrant retailers. 
Smart meters have the potential to reduce peak demand thereby deferring the need for investment in new generation transmission and distribution assets. As all speakers have alluded to it could lead to cost savings for consumers retailers and distributors enabling greater consumer participation in and understanding of the electricity market. The recent ministerial review of electricity market performance led by the Hon Gerry Brownlee endorsed the introduction of smart meters in New Zealand because of the benefits they will bring. But the key point is that the Government supports the introduction of smart meters. 
In terms of the current regulation around smart meters some aspects of metering are regulated under Part D of the Electricity Governance Rules. The roll-out of smart meters is unregulated. However the Electricity Commission issued guidelines in May 2008 that recommended minimum standards for smart metering systems. These guidelines are recommendations only. The Electricity Commission of course reported to the Minister in December 2009 about the regulation of smart meters. The commission’s overall recommendation is that it is not necessary to extensively regulate the roll-out of smart meters because and this is the critical point the benefits of regulation do not outweigh the costs. Let me repeat that for the benefit of members opposite. The benefits of regulation do not outweigh the costs. The commission considered that some technical aspects of smart meters addressed only in the current voluntary guidelines should be regulated. Those regulations are being progressed as part of the fundamental review of the electricity market rules as my colleague has alluded to. 
Why should we not support this bill? Well some of the bill’s provisions are unnecessary because of widespread compliance with the voluntary guidelines on smart meters. There are technical matters contained in the bill that are inappropriate for primary legislation. They can instead be advanced through the rules made by the new Electricity Authority. The bill is also inconsistent with the expert advice of the Electricity Commission that we have all spoken about. It recommended against the extensive regulation of smart meters. Passing this bill would impose extra cost on consumers who are still reeling from the electricity price rises under the last Government. What were those price rises? I will remind the House. Prices rose at three times the rate of inflation—75 percent over 9 long years of the Labour Government.