Cost benefit analysis of smart metering and direct load control

13 Mar 2008

NERA was engaged by Australia's Ministerial Council on Energy's Smart Meter Working Group to estimate the net benefits associated with a mandatory rollout of smart metering, and a non-smart meter direct load control alternative. NERA had responsibility for the overall coordination of the project (which involved a number of consulting firms) and the cost benefit analysis modeling, and also undertook the analysis of the likely impact on customers of a smart meter rollout. NERA has provided two reports. The Overview Report summarizes the results of the national cost benefit analysis and includes the estimates of the costs and benefits of smart metering and direct load control for each jurisdiction in Australia. It also provides NERA's final recommendation as to the national minimum functionality for smart meters. The Consumer Impact report estimates the impact on customers (including customer demand) of a national rollout of smart meters or a direct load control alternative.

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