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SILICON SILIC CHIP www.siliconchip.com.au Publisher & Editor-in-Chief Leo Simpson, B.Bus., FAICD Production Manager Greg Swain, B.Sc. (Hons.) Technical Editor John Clarke, B.E.(Elec.) Technical Staff Ross Tester Jim Rowe, B.A., B.Sc Nicholas Vinen Photography Ross Tester Reader Services Ann Morris Advertising Enquiries Glyn Smith Phone (02) 9939 3295 Mobile 0431 792 293 glyn<at>siliconchip.com.au Regular Contributors Brendan Akhurst Rodney Champness, VK3UG Kevin Poulter Stan Swan Dave Thompson SILICON CHIP is published 12 times a year by Silicon Chip Publications Pty Ltd. ACN 003 205 490. ABN 49 003 205 490. All material is copyright ©. No part of this publication may be reproduced without the written consent of the publisher. Printing: Hannanprint, Noble Park, Victoria. Distribution: Network Distribution Company. Subscription rates: $97.50 per year in Australia. For overseas rates, see the order form in this issue. Editorial office: Unit 1, 234 Harbord Rd, Brookvale, NSW 2100. Postal address: PO Box 139, Collaroy Beach, NSW 2097. Phone (02) 9939 3295. Fax (02) 9939 2648. E-mail: silicon<at>siliconchip.com.au ISSN 1030-2662 Recommended and maximum price only. 2  Silicon Chip Publisher’s Letter Smart power meters ain’t smart Recently there has been quite a lot of media comment on the Federal government’s plan to rein in power costs for consumers which seem to be rising inexorably at way above the Consumer Price Index. Naturally there have been accusations from one side of politics that it is green power subsidies that are causing the majority of the tariff increases. Meanwhile the green side of politics has retorted that it is caused by the power distribution companies “gold-plating” their systems or that they are over-building merely to cope with power peaks that occur only a few times a year. First of all, it is undeniable that some of the increases in domestic electricity tariffs have been caused by green power subsidies. The fact that the power companies are legally bound to buy solar and wind power at much higher rates than payable to coal fired power stations is unchallenged. While I regard these measures as a considerable misallocation of resources, ie, from the longsuffering consumers, some people regard it as essential to mitigate the effects of so-called “carbon pollution”. It is also necessary to refute the charge that the energy distribution companies are “gold-plating” their networks, commonly referred to in media parlance as “poles and wires”. Such accusations are rubbish. In fact, over the past four or five decades, state governments have seriously run down the grid infrastructure which consists of far more than “poles and wires”. We are talking about substations, high-voltage transformers and switch-yards, high-voltage transmission lines and so on. Much of this stuff is very old and often much older than the coal-fired power stations, many of which have been running for more than 40 years. Many suburban substations are more than 60 years old. Even the power poles and transmission wires in Australian cities are very old and are seldom maintained in any way except to replace poles that are rotten or to repair damage from storms and road accidents. This infrastructure doesn’t last forever and so ongoing upgrades are required. And any suggestion that “smart” power meters might enable consumers to lower their electricity bills is just nonsense. “Smart” meters might be smart for the energy retailers, enabling them to have much more expensive tariffs at times of peak demand but they are certainly not smart for the consumer. The idea that they are “smart” for the consumer implies that he or she can plan activities during the day to avoid high tariff times and do stuff at night. Great. But wouldn’t it be so much “smarter” and equitable if the so-called smart meter had a large display inside the home indicating the tariff and cost of power being consumed at all times? That would be “smart” but that is not part of the plan. No, the plan is to jack up the tariff and if you need to cool your home after a long hot day, then you can simply cop it sweet and pay. Lots. And we also know what happens when consumers do manage to reduce their consumption of electricity or water or gas, don’t we? The companies concerned still manage to increase their overall revenues by jacking up the tariffs even further and also the daily tariff charges. No wonder some people are looking to install their own self-contained solar power systems so that they can disconnect from the grid. The rising tariffs make such moves economical and they also have the advantage that when there is a system blackout, you still have power. I guess that might even make the greens happy. Power to the people! Leo Simpson siliconchip.com.au