Graham Kennedy: Smart Meters (Consumer Choice) Bill — First Reading 
Graham Kennedy: Smart Meters (Consumer Choice) Bill — First Reading 
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Dr KENNEDY GRAHAM (Green) 
: 
 I take pleasure in rising to support David Clendon’s Smart Meters (Consumer Choice) Bill. The purpose of the bill is to empower domestic consumers to better manage their electricity use. The mechanism to achieve that is twofold: first by requiring the providers of such meters to inform domestic consumers of their options when smart meters are about to be installed; and second to set minimum standards for the provision of smart meters. 
As the title of the bill indicates this is all about consumer choice. It must therefore be clear that this Government would be positively predisposed to support it. I note that earlier in this debate Sam Lotu-Iiga acknowledged that his Government supported the introduction of smart meters in themselves but alas not this bill. 
The Minister of Energy and Resources has expressed a concern that the bill imposes over-regulation on the industry. But the Parliamentary Commissioner for the Environment and the chief executives of six major lines companies have called for far more stringent regulations than are proposed in our bill. Under the bill one of the requirements for smart meters in this country is the provision of a home area network as has been acknowledged. This is a chip that can be installed inside the smart meter that would enable any electric or electronic device to communicate with the meter. The Minister along with the Electricity Commission recommends against proceeding with these chips. But if the bill is voted through to the select committee this issue can be explored. We could perhaps accept deletion of this provision although it is not easy to follow the logic of the argument against that. 
The basis of the cost-benefit analysis against such chips assessed by the New Zealand Institute of Economic Research was highly skewed against them in three ways: first it used retail prices for the costs and wholesale prices for the benefits; second it downplayed the electricity savings by 80 percent compared with the studies it quoted without giving any substantive reason besides suggesting that somehow New Zealand was different; and third it used the retail price for the home area network chip but in fact the chip comes pre-installed in the meter which makes a difference of $65 per unit. 
In the United States there is some public concern over the accuracy of smart meters resulting in calls for regulation. Our bill does not require regulation; it just gives the Minister the authority to regulate should that be needed. It has been argued that appliance manufacturers must move on a protocol first before smart meters do. I note that Aaron Gilmore earlier in the debate expressed concern about the different standards prevailing and concern about uncertainty over the precise technology that might apply in the future. Yet we understand from at least one major manufacturer that until the smart meter protocol is mandated they will not move to develop the interface. That is why other countries are mandating a protocol by way of regulation. Only this initiative will get things moving. Of course there may be problems of obsolescence down the line but the chip socket will still be in place so the chip can be upgraded at less than total cost. 
Does the Government truly believe that the cost-benefit analysis of the consumer aspects of smart meters will not pay? Does it believe that it will be 10 years before they are fully functional? If so the Government should introduce a moratorium on their installation. Otherwise the extra costs that retailers are charging to customers for smart meters that are of no use would be indefensible. 
This bill is about making New Zealand a smart economy. It is about using high tech to make us warmer more efficient and less polluting in our lifestyle. It gives the consumer the option of choice. The only thing standing between households and the absurd power price increases we are all facing is this bill. There can be no sound reason to oppose the bill. Any refinements that are warranted can be agreed to in the select committee. I call upon Government members to support the bill still at this stage and work with the Green Party to make it become law.