The Oil Drum

How are smart meters being introduced?

In support of the Ontario Government's smart meter initiative, six of the province's major urban electricity utilities are working cooperatively under the brand name powerWISE® to implement delivery of smart meters to consumers on a province-wide basis. They are each undertaking smart meter pilot projects that involve installing the meters in customer's homes in order to test the various technologies that will be required to deliver smart meter services.

The intention of the smart metering policy is to use time-of-day pricing to reduce peak demand by encouraging load shifting, as meeting peak demand during peak season frequently involves reliance on expensive electricity imports. Reducing peak demand could remove the need for new peaking plant and its associated transmission capacity, as well as dampening price volatility in the energy markets. It remains to be seen, however, how much load-shifting can be achieved under the policy as currently conceived.

Consumers were told they would be paying monthly for the new meters, but that the meters would help them to save money in the long-term as their consumption shifted to off-peak hours. However, opinions vary as to the scope for such savings. Given that the meters are likely to cost $400-$500, it is by no means clear that any savings will accrue to consumers.