An energy watchdog has sounded the alarm over the rollout of smart meters in Australia’s most populous state, saying too many consumers are being hit with poor service and left worse off.

The New South Wales Energy and Water Ombudsman is the latest body to shine a light on shortcomings in the deployment of smart meters to millions of homes across the country.

The NSW Ombudsman noted with some disbelief that there had been a big jump in the number of complaints it received about estimated power bills.

This was despite the fact smart meters, which had been installed on almost half of all homes in NSW, were supposed to ensure timely, accurate meter readings that could be done remotely, eliminating the need for estimated bills.

The watchdog said there had also been a major increase in the number of complaints related to sudden, unexplained changes to people’s electricity tariffs.

Such changes often involved customers being switched from flat rate prices, where they paid the same rate for a unit of power no matter when they bought it, to complex and dynamic charges.

Among these were time-of-use tariffs, in which customers paid more for power at peak times, and demand charges, which involved charging someone based on their single biggest half-hour of use across an entire month.

Ombudsman Janine Young also took aim at changes to metering that were supposed to give consumers more control over their consumption while allowing them to reduce their bills.

“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 [the ombudsman], in fact, we are seeing the opposite.”

Of particular concern to Ms Young were changes to metering that allowed unregulated private companies to provide the service.

Previously, network poles-and-wires companies such as Ausgrid and Endeavour Energy were responsible for installing and managing meters on customers’ properties.

However, Ms Young noted that the Power of Choice reforms had ushered in completely different rules in which new, and largely unaccountable, players had entered the mix.

Ms Young said consumers with any complaints or queries about smart electricity meters should contact her office on 1800 246 545.

By ABC energy reporter Daniel Mercer

Abridged from: https://www.abc.net.au/news/2025-04-07/nsw-energy-ombudsman-sounds-alarm-at-smart-meter-rollout/105140486