Weighing the benefits of real-time data

Hey Reader, welcome to The Energy's weekly data newsletter. This week we explore real-time data from the meter and the case for reform.

The costs and benefits of real-time meter data

Energy consumers don’t need or want real-time energy data. So goes the argument from almost all of Australia’s energy networks and retailers.

Regardless, Australia’s energy regulation machine rolls on and at some point they’ll be forced to enable it. The question is, what will happen in the interim?

Next month rule maker the Australian Energy Market Commission (AEMC) will deliver its draft determination on giving consumers access to real-time data from the meter - in 15 years.

Real time on slow time

Australia’s current ‘smart’ meters are not really smart, so the 15 year time frame is based on the lifetime of current meters, allowing for them to be replaced with superior technology.

While most of the networks would like to see a much faster time-frame set, retailers are happy to drag their feet given concerns about cost versus benefit to their businesses. ENGIE suggests 20 years would be more appropriate.

In cases where the organisation did not state a time frame but suggested far shorter,
we've listed 5 years.

Who benefits?

The ruling on real-time data has already been delayed after the AEMC heeded calls from both networks and retailers for a cost-benefit analysis to be done.

At the heart of these calls are diverging views on the need for “real time” data as defined in the rule change proposal, versus data at 5 or 30 minute intervals.

In its submission during consultation NSW state-owned network Essential Energy said

"The Commission should consider whether the definition of real-time data proposed in the directions paper (“voltage, current and phase angle recorded every second and delivered within a second”) is adding unduly to the costs of implementing the proposed changes.

"The directions paper provides no indication of these costs, the costs of an alternative definition of real-time data, or what definition provides the greatest net benefits to consumers. However, it is logical to assume that a lower standard such as near real time in five-minute intervals, could be delivered at lower cost, or no upfront cost to consumers."

But as Essential Energy also points out, the energy technology landscape of 2025 bears little resemblance to that of 2010.

In 2040, by the time real-time data is formally enabled, AI will be a daily reality in many aspects of our lives and consumer energy resources (CER) will be mainstream.

Indeed, savvy consumers already tap their energy use data via behind-the-meter offerings.

And while the networks often cite benefits such as better outage handling, asset condition monitoring and dynamic voltage management, they too can achieve these things with data from alternate sources to the meter.

Expert view

“Today’s challenge of implementing useful meter data for both networks and consumers is in part a legacy of a disastrous historical policy decision we’ll be paying for throughout the energy transition: shifting metering from distributors to retailers. If not for that we probably could have fixed this problem through network regulations a decade ago. Instead we’ve been chasing our tails just trying to get access to standard smart meter functionality, like detailed voltage data for networks, which is taken for granted in Victoria where they dodged the contestable metering bullet.

Everywhere else, we don't even really have smart meters; we have remotely read interval meters, setting us back 20 years on functionality. So the most effective solution at this stage is also the least likely: admit we stuffed up, and hand responsibility for metering back to distributors, with contestable metering as an opt-in and strict conditions on functionality.In the absence of that, we can still move forward on data with practical solutions that work for people: mandate metering and metrology to support CER participation in 5 minute markets, and permit the use of suitable non-“market meter” data from in-home devices like inverters for granular, real time data, including for VPP participation.”

Craig Memery
Senior Adviser, Energy & Water Justice, Justice and Equity Centre

The gap between data and useful information

Energy Consumers Australia’s bi-annual poll of Australian energy users suggests there is an appetite for real-time data, particularly if it can be used to help make informed decisions.

ECA argues real-time data access provides a way for all Australian households to see their energy use and reduce their bills, bridging the energy divide in which some consumers, particularly those with limited or no access to CER, continue to face higher energy bills while those with ability to access new technologies reduce their bills to at or near zero.

This is backed up by evidence that real-time data, delivered in a helpful way, leads to consumers using less energy.

A recent randomised controlled trial of 800 households in the Netherlands found the use of smart-meter data to relay real-time information on energy use led to consumption savings of 6.9% for gas and 2.2% for electricity. Other studies have shown larger reductions.

Under the trial, consumers were given a dashboard showing the cost of their current energy use and the impact this would have on their future bill.

Bring on our AI overlords

While the sector debates what level of real-time data is necessary and who should pay for it, global research EY shows many consumers are looking forward to a world where AI is part of their energy experience.

The same survey found 88% of Australian consumers would change their energy usage to save money, if supported by notifications sent by their provider.