Customers confused by smart meter roll out - EWON report shows

7 April 2025
 

Complaints to the Energy & Water Ombudsman NSW (EWON) indicate that many consumers are not receiving the benefits of the retailer-led smart meter rollout.

More than a decade after the Power of Choice metering framework was introduced, customers with smart meters experience estimated bills, billing delays, backbills, tariffs, data access and retailer delays with disputed bill reviews.

By mid-2024, 46% of NSW households had smart meters installed but EWON’s latest report shows estimated bill complaints have increased by 13% compared to 8.7% in 2017. The rollout of smart meters aimed to eliminate estimated meter readings and ensure customers are billed on actual usage. But that’s not what’s happening for many consumers.

The report outlines the disconnect between energy retailers, customers and Meter Service Providers (MSPs). “MSPs own and control the smart meter at customer’s properties, but no contractual relationship exists between the MSP and the customer,” said Ombudsman, Janine Young.

“There is also no regulation requiring MSPs to respond to customer or retailer queries, assist with resolving customer disputes or participate in external dispute resolution schemes which means EWON’s capacity to assist customers is impacted with complaints taking longer to resolve,” she said.

The Ombudsman said customers contacting EWON are confused about receiving estimated bills and frustrated by lengthy delays when trying to dispute or query a bill with their retailer.

“The smart meter rollout aimed to increase flexibility and customer engagement with the energy market, by allowing customers to manage their energy usage and save money,” Ms Young said. “But we aren’t seeing evidence of this in complaints that come to EWON, in fact we are seeing the opposite.

We’re highlighting these issues now so that we can explore solutions and build customer trust and engagement in the energy market.”

EWON plans to draw on consumer and market experience to understand:

• Why estimated bills are still a significant feature of the energy market in NSW.
• How the current commercial relationships between energy retailers and MSPs can be improved to deliver equitable customer outcomes.
• Whether MSPs should be brought into the National Energy Consumer Framework (NECF), including requirements to meet key protections including the development of a deemed customer contract, and the requirement to join an energy ombudsman /external dispute resolution scheme.

Read the full report including case studies here

To request an interview with the Ombudsman please email Jacqueline Morrison, Communications Lead or call 0426 822 341 or email Fran Strachan, Communications Manager or call 0429 416 070