Smart Meters for Dummies?

Smart Meters for Dummies?

Posted by: 3AW Radio | 15 August, 2011 – 1:01 PM

The State Government has defended the smart metre distribution companies, claiming they are respecting the wishes of home owners.

There are reports from callers over the weekend and on Neil Mitchell’s program that meters are being installed without consent of property owners.

It’s despite the Government saying everyone has the right to reject installation while the scheme under review.

Energy Minister Michael O’Brien says the distribution companies have agreed to these terms, and is surprised by reports of rogue installers.

via Smart Meters for Dummies?.

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Surge in electric hostility – The Age

Property owners are receiving smart meteres whether they want them or not.SMART electricity meters are sometimes being installed without consent and against the wishes of property owners, sparking a surge in consumer complaints and, in extreme cases, attacks on electrical contractors.

Power companies continue to roll out the controversial technology and are increasingly targeting apartment buildings in their installation timetables. This is all despite a government review that could scrap the scheme, although there has been an assurance from Energy Minister Michael OBrien that meters already installed would be retained regardless of the outcome.

New figures from the Energy and Water Ombudsman reveal complaints about smart meters almost doubled during the first six months of the year, amid growing anger over the tactics used by electricity distributors. There are also claims that up to 15 per cent of the new meters deliver inaccurate readings.

The former Brumby government introduced the technology to encourage Victorias 2.2 million households and 300,000 businesses to curb energy consumption and reduce carbon emissions by using off-peak tariffs.

But some consumers say that they cannot use power at the times of day when cheaper rates are available, despite having to pay higher charges for new meters.

About 750,000 meters have already been installed, and the Baillieu government is awaiting an independent report before deciding on the future of the scheme. The review by Deloitte followed a $1.2 billion cost blow-out and a consumer backlash. Weve received a wide variety of customer complaints, from problems with the exchange of meters, high bills and installation issues.

While the government made it clear that people could object to having a smart meter installed, weve had complaints from people who left a note on their existing meters, which was not complied with, Energy and Water Ombudsman Fiona McLeod said.Complaints to the ombudsman soared to almost 500 in June; the highest number since the meters were first rolled out in 2009.

Ms McLeod said there was a perception that the meters contributed to higher bills. A lot of the old analog meters run slow or are faulty, so some consumers are actually getting an accurate reading with the new meters, but may not be happy with that outcome, Ms McLeod said.

Several apartment owners have claimed that energy distributors have ignored their requests to defer installation until the state government made its decision on the future of the contentious scheme. They [power companies] are coming in and insisting that tenants co-operate, often without any notice and disregarding the fact that owners have a right to say no, said Strata Community Australias Victorian president, Stephen Raff.

Distributors must give tenants at least 20 days notice and provide a second notification four days before installation.Mr Raff said his organisation, which represents Victorias body corporate managers, had been inundated with complaints from apartment owners and tenants, with about 15 per cent claiming that meter readings were inaccurate.

He said power companies were targeting apartment blocks to continue their meter rollout because there was often confusion between owners, tenants and real estate agents over access to meter boxes.

The electricity distributors, who sought to charge $1.24 billion to install and operate smart meters between 2012 and 2015, have recently been rebuked by the Australian Energy Regulator for their proposed charges.In a draft determination, the regulator said the cost should be $760 million which, if accepted, would allow power companies to increase charges by only 20 per cent rather than the proposed rise of 61 per cent between 2011 and 2015.Consumer Action Law Centre energy spokeswoman Janine Rayner called on the government to provide more information on the embattled program.

We are still waiting for an honest and clear campaign about why we need this technology. We still dont know who will be better or worse off, Ms Rayner said.Growing frustration among consumers is also causingproblems for electrical contractors used by the power companies to install the meters.Some electricians have been forced to walk away from jobs after physical threats and verbal abuse from irate home owners.Electrical Trades Union organiser Peter McKinnon said he had advised members to avoid conflict. This technology seems to have generated a huge amount of hostility and our members are copping a fair amount of abuse, but its not their fault, Mr McKinnon said.If people dont want the meters then they should say so. We are not going to get involved in punch-ups over this.Representatives of United Energy, Jemena, SP AusNet and CitiPower denied that tenants had been given inadequate notice about meter installation. Several blamed delays in the government review and misleading media reports for uncertainty surrounding the program.A spokesman for the Energy Minister said the reports findings would be released by the end of the year.Opposition energy spokeswoman Lily DAmbrosio said the government had failed to allay consumer fears of a sharp rise in power bills.The Premier has had nine months to make a decision and now his dithering is creating enormous confusion and anxiety among Victorians, Ms DAmbrosio said.

via Surge in electric hostility.

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Smart meter rip-off stopped | Herald Sun

POWER companies have been caught trying to grab an extra $500 million from Victorians to pay for the smart meter roll-out.

The Australian Energy Regulator has moved to block a bid by CitiPower, Jemena, Powercor, SP AusNet and United Energy Distribution to charge $1.24 billion to build and run the smart meter system from 2012-15.

The regulator said the cost should be $760 million.

The decision has been hailed a major win for Victorians struggling with soaring electricity costs.

Under the regulator’s draft decision, households would save up to $60 a year during the smart meter roll-out, depending on provider.

St Vincent de Paul spokesman Gavin Dufty said the draft findings were brilliant for customers, provided power companies were not able to overturn them before the report was finished in October.

“It’s good that the AER has knee-capped the distributors,” he said.

“This means that the projected $100 increase on electricity bills next year will be halved. Hopefully the framework is strong enough so the distributors can’t appeal and win before the decision is finalised.”

The Herald Sun revealed in April the total cost of the bungled smart meter program had soared to $2.32 billion, adding $100 a year to power bills.

Power companies had wanted to increase charges by 61.7 per cent between 2011-15 but, if yesterday’s AER draft ruling is confirmed, the rise would be cut to 20.3 per cent.

The future of the smart meter program is still uncertain as the State Government reviews the roll-out to determine if, and under what circumstances, it should continue.

Energy Minister Michael O’Brien said he would ask the regulator to support “fair charges and an affordable and secure electricity supply”.

Energy Networks Association spokesman Hugo Armstrong said companies would not comment before reading the AER draft.

The regulator signalled that power companies had failed to justify the expenditure they claimed was needed for the second phase of the roll-out.

Consumer Action Law Centre energy spokeswoman Janine Rayner said the regulator had served customers well by restricting the power company increases.

“We still have concerns with the fact consumers are still paying for these smart meters and paying these costs before the benefits are being realised,” she said.

“It is a draft decision so the businesses will still have an opportunity to provide extra substantiation.

“We will be asking the AER to continue to provide the same level of scrutiny to ensure the businesses are demonstrating the need for these costs.”

via Smart meter rip-off stopped | Herald Sun.

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Are smart meters security disasters? – ZDNet Australia

The security weaknesses could potentially allow miscreants to snoop on customers and steal data, cut off power to buildings, and even cause widespread outages, according to a number of experts who have studied the meters and looked into smart-grid systems. A new paper out of the University of Cambridge highlights privacy concerns from smart meters, as well as security risks caused by linking home-area networks, of which smart meters are an initial piece, to utilities.

“From a hardware perspective, [mobile] phones today are more secure than many of the smart meters in deployment,” said Karsten Nohl, a security researcher based in Germany who has previously analysed mobile phone and smart card security.

(Smart meter image by Tom Raftery, CC BY-SA 2.0)

“Those meters, however, may be used as attack vectors into the spheres of power distribution and generation, as well as into customer databases at the utilities,” Nohl said. “They deserve nothing less than the best hardware protection available.”

Sources for this story would not name which smart meters they found problems in or which utilities are deploying them. In general, the meter projects tend to have similar issues because of how quickly they are being deployed, they suggested.

There are about 250 active smart-metering projects worldwide, with about 49 million meters already installed and 800 million planned for installation, according to the Meterpedia.com blog. Projects in the US are being accelerated because of the US$3.4 billion in stimulus funds set aside for smart-grid technologies. In Australia, Victoria has plans to roll out meters to 680,000 customers by 2013. Western Australia and New South Wales have also been involved in trials.

Utilities are focused on their core business and they are relying on vendors to provide security in the meters, sources said. But vendors have a disincentive to provide strong security features because that tends to increase the cost to develop and manufacture, making the meters more expensive and less competitive in the market, Jonathan Pollet, founder of Red Tiger Security which tests security features in SCADA systems said.

“Since there is no federal mandate as to how much security to have in the meters, there aren’t the right motivation factors for security to be a major factor,” Pollet said. “It’s an afterthought.”…………………………………….  continue reading via Are smart meters security disasters? – Security – News – ZDNet Australia.

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Angry owners blame smart meters as costly gadgets blow | Herald Sun

HOUSEHOLD appliances are breaking down just hours or days after smart meters are installed.

Angry homeowners stuck with bills for repairs or replacement ovens, washing machines, dishwashers and fridges fear the new technology is to blame.

But electricity companies insist the meters are not responsible.

Power surges, ageing and faulty appliances and even rats chewing wiring were potential culprits.

Industry insiders confirmed some appliances did not work after a smart meter installation because an existing fault was exposed when the power was cut off and then reconnected.

Berwick’s Anthony McDonald said his oven’s element blew just days after a smart meter went in about six weeks ago.

He noticed his spa heater also wasn’t operating, the kettle went on the blink, and, later, the clothes dryer overheated.

“You can’t help but be suspicious,” said Mr McDonald, who spent more than $600 on fixing or replacing the goods.

Distributor SPAusNet, which checked its records when contacted by the Herald Sun, ruled out any link.

“We use A-grade qualified electricians and do a safety check and correct installation check. It was a normal changeover,” spokesman Joe Adamo said.

Mt Waverley woman Patricia McIntyre had to throw out spoiled food and spend $1000 on a new fridge when her old one stopped the same day her smart meter was supplied in December.

Jemena spokesman Scott Parker said, in a “very small number of cases”, appliances had not worked when power was reconnected following a smart meter installation, usually because of an existing fault.

He said an investigation found Mrs McIntyre’s fridge had a faulty defrost element.

“The issue is directly related to the condition of the appliance when the power is turned on and off for any reason,” Mr Parker said.

“All customers are encouraged to submit a claim form where they feel they may have been disadvantaged, and it’s always assessed on its merits.”

Hampton Park woman Joanne Moore said her washing machine and dishwasher also “died” days after she got a smart meter.

Energy Safe Victoria said switching to smart meters didn’t increase voltage.

via Angry owners blame smart meters as costly gadgets blow | Herald Sun.

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Black hats and whitegoods – Security – Insight – ZDNet Australia

The Internet of Things will soon become a serious security problem unless we start dealing with it right now. “Our dishwashers will kill us!”? Not quite. It’ll be the tumble dryer — coordinated by the TV.

Your fridge could be attacked. (Credit: LG)

With dozens of smart, internet-enabled devices connecting to the grid, the risks are certainly multiplying. Are manufacturers paying enough attention to security? I suspect not.

I spent most of yesterday in an AusCERT conference stream covering SCADA industrial control systems, resilient enterprise networks, smart meters, hardware security and the like. The discussion was held under the Chatham House rule, so I can’t attribute comments to specific individuals. But I was left with the distinct impression that the bad guys are indeed winning. Again.

Up at the industrial and critical infrastructure end it’s all talk of Stuxnet versus SCADA, just like it was at the RSA Conference in February. Iran is already claiming to have been hit by a next-generation Stuxnet, a thing called Stars, and experts reckon we’ll probably see low-rent copies of Stuxnet within a year. The information is out there, gleaned from reverse-engineering Stuxnet, and the technology is attractive to criminals.

Why run a protection racket against a casino when you can threaten an entire oil refinery?

Now, the energy industry already understands the risks involved with operating critical infrastructure. Or at least it thinks it does, and it spends time and money working on the problem. Other industries are less knowledgeable. That’ll be a challenge, and some of what we’re hearing isn’t good.

SCADA networks are scanned and probed and hit with distributed denial-of-service attacks (DDoS) with increasing frequency. They can be taken over simply by inserting a USB key into a network-connected PC. We saw that demonstrated live on stage. You can’t stop the worm spreading through the protected network because it uses the same ports as SCADA itself. If you block those ports to block the worm, you also block your ability to control your own system. That’s a win for the attacker.

“The bad guys know as much about our networks as we do,” said one clued-up network defender. “The cat and the mouse? The cat is always going to win, and we’ve got to build smarter mice.”

That doesn’t exactly sound optimistic.

However, it’s the consumer arena that really needs more attention.

Once smart meters get installed — as is already happening in parts of Australia — we’ll soon have devices connected to both the energy company’s wireless mesh and the home LANs and WLANs. This means that they’re potential gateways. TVs now come with webcams and microphones, so they’re potential monitoring devices. Appliances from air conditioners to swimming pool filter pumps have the potential to affect the physical environment. In-home displays can be fed false data.

As one presenter put it, “From the smart meter point of view, every device in the house is potentially hostile.” Where is the network boundary here? Who’s responsible for what? At this stage that’s unclear.

What about the security of these devices? We were shown myriad ways to extract the encryption keys from hardware. As Stephen Wilson from the Lockstep Group tweeted, “I’ve always thought key management is like car engine maintenance circa 1910. Not for the faint hearted. Nor the future. The science is fine, but the engineering clunky and supply chain totally f***ed up. Crypto keys matter to users as much as DLLs.”

Or, as a conference presenter put it, “Key management is epic fail for many systems.”

That doesn’t exactly sound optimistic, either.

Communications minister Senator Stephen Conroy once used the smart dishwasher as his NBN wonder story. It’d negotiate its own electricity price late at night and you’d save a fortune. Why hack the well-protected PC to rope it into a botnet when you can DDoS from the kitchen appliances?

Or, after last month, the PlayStation?

When was the last time you heard a whitegoods or consumer electronics manufacturer talk about network security? You certainly don’t see them at the conferences.

We’ve been here before. We hooked our PCs into the internet. They got pwned; we didn’t know any better. We hooked our smartphones into the internet. They got pwned; we’d forgotten that smartphones are computers, too. Now we’re hooking TVs and tumble dryers into the internet. Falling for this trap a third time wouldn’t be a good look. So far it’s all questions with very few answers, and time is running out.

via Black hats and whitegoods – Security – Insight – ZDNet Australia.

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Smart meters may get the flick | Herald Sun

VICTORIA’S new electricity smart meters could get the axe with the state’s 2.6 million households and business owners being asked for their view.

The State Government will today launch a review of the program amid fears of rising electricity bills and safety concerns.

Energy Minister Michael O’Brien said there has been a significant public concern and a “lack of confidence” in smart meters.

“The Coalition Government wants to hear what Victorians and the industry think about smart meters and what can be done to try to improve this program,” he said.

An Auditor-General’s report last year found the installation costs had blown out from the original estimate of $800 million to more than $2 billion.

And the program has faced heavy criticism that households face power bill rises of up to $100 as the true cost of the smart meters program becomes clear.

Australian Energy Regulator documents seen by the Herald Sun last month show electricity distributors forecast a $1.24 billion hit on households to build and run the system.

There were also concerns that unqualified workers had been hired to work on the installation program after a draft safety review revealed nine supervised workers did not hold the right electrical certificate.

Smart meters were introduced to encourage households to cut energy use and shift to off-peak use to reduce greenhouse gas emissions.

The previous Labor government said smart meters would save about $2.5 billion over 20 years.

About 630,000 meters have been installed.

The rollout was originally due for completion in 2013.

via Smart meters may get the flick | Herald Sun.

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Victoria pulls the plug on smart meters – brisbanetimes

The Victorian state government has finally twigged that most people will get screwed by electricity smart meters.

Energy Minister Peter Batchelor announced an indefinite moratorium on the smart meter rollout to every home across the state – because of concerns pensioners and the poor would be hardest hit by higher electricity prices. The writing has been on the wall for some time.

Smart meters are designed to track your energy usage and they have some really cool applications in terms of energy efficiency and home automation. They also allow energy retailers to charge more for electricity during times of peak demand. Unless you work night shift and sleep all day, you’ll almost certainly end up with higher electricity bills once you get a smart meter. People at home during the day will get slugged the most – pensioners, the unemployed, stay-at-home parents and people like me who work at home.

Last year the Victorian Auditor-General’s office slammed the electricity industry’s early efforts to introduce smart meters, as well as the Department of Primary Industries overseeing the project. A report on the early rollout found ”the level of community engagement has been inadequate” with ”significant unexplained discrepancies” between industry’s economic estimates and other studies.

Estimates vary, but the Department of Primary Industries believes households will pay between $40 and $50 a year for the new meters. On top of this will most likely be a higher usage bill.

”The cost-benefit analysis is unclear about how stakeholders, particularly consumers, will benefit and who should bear which costs. There is little evidence to show that when the project was designed, the resultant benefits and costs were adequately considered. It is therefore possible that there will be an inequitable, albeit unintended, transfer of economic benefits from consumers to industry,” according to the report.

In other words, the smart meters might be a smart idea for the electricity industry but not so great for consumers as they end up getting slugged with higher bills.

Some electricity providers are trying to put a positive spin on smart meters, presenting them as a tool for tackling climate change. I see them more as a blatant money grab, especially when you consider it won’t be possible for many households to transfer the bulk of their energy usage – such as heating, cooling, cooking and entertainment – to offpeak times. I won’t be impressed if my neighbours start vacuuming at two in the morning just to shave a few dollars off their electricity bill.

I have no problem with a user pays system. I’d be happy to pay slightly higher bills as long as the providers were honest about it up front – but the Auditor-General’s report makes it clear that the electricity providers are being less than honest with consumers. The electricity providers are trying to paint smart meters as a benefit to consumers when they’ll clearly be a burden. It’s little surprise that, in an election year, the government has decided to temporarily pull the plug on smart meters.

via Victoria pulls the plug on smart meters – Gadgets on the Go – Digital Life – brisbanetimes.com.au Blogs.

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Electricity: smart meters > Michael O’Brien MP, State Member for Malvern

ELECTRICITY: SMART METERS

24-March-2010

Mr O’BRIEN (Malvern) — I grieve for all Victorian families and small businesses who are suffering now and will suffer for years to come because of the gross incompetence of the Brumby government’s oversight of the rollout of smart meters across this state. The smart meter project has gone from shambles to scandal under the incompetence of the Brumby government………………..  read more via Electricity: smart meters > Michael O’Brien MP, State Member for Malvern.

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Plug pulled on smart meter plan

Paul Austin: THE state government has temporarily pulled the plug on Victoria’s $2 billion smart energy meter program.

Energy Minister Peter Batchelor last night announced an indefinite moratorium on the rollout of the new technology to every home across the state – because of concerns pensioners and the poor would be hardest hit by higher electricity prices.

Mr Batchelor made the announcement, an election-year embarrassment for the government, after meeting representatives of the poor, including St Vincent de Paul and the Victorian Council of Social Service.

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He made it clear the government intended to push ahead with the scheme, but gave no indication as to how long the moratorium might last.

The plan to install smart meters in all 2.5 million Victorian homes and small businesses over the next four years, and introduce a new time-of-use pricing regime, has been beset by controversy.

The government argues the new technology, which can read a household’s energy use every 30 minutes, will enable people to monitor their use in peak periods and turn on high-energy appliances such as dishwashers during off-peak times.

But charity groups estimate the meters, dubbed ”dumb meters” by the state opposition and already installed in more than 10,000 homes in Melbourne, could increase a household’s annual electricity bill by more than $250 a year.

Victorian Auditor-General Des Pearson savaged the scheme in a report to Parliament late last year, saying installation costs had blown out from an original estimate of $800 million to more than $2 billion. ”There has been insufficient analysis to fully understand potential perverse outcomes, risks and unintended consequences for consumers,” he said.

VCOSS chief executive Cath Smith last night welcomed the moratorium, saying Mr Batchelor had recognised that people who spend a lot of time at home during the day or who could not shift their energy use to off-peak times could suffer.

Ms Smith said the elderly, long-term unemployed and people with disabilities might be hit hardest by the new pricing plan. ”It’s imperative the impacts of time-of-use pricing are investigated and measures are put in place to ensure low-income and disadvantaged households are not worse off,” she said.

Mr Batchelor said last night: ”We are committed to ensuring the transition to a new pricing structure is managed carefully and sensibly.” He promised to regularly review the effect of time-of-use tariffs on families.

But he defended smart meters, saying they would help Victorians tackle climate change.

via Plug pulled on smart meter plan.

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