Lives at risk. Rate cut for sparkies ahead of smart meter speed-up

Electricians working on the national smart meter rollout said: MWM In June, low rates were putting lives at risk. Now they say things are getting worse. Zach Szumer with story.

The country’s accelerated smart meter rollout could turn tragic or face labor shortages as new interest rate cuts worsen conditions in the industry, electricians say MWM.

The government wants every home in Australia to be equipped with a smart meter by 2030, and while less than 50 per cent of homes in states such as NSW, SA and QLD have new meters, new rules have been introduced to speed up the rollout.

Already across much of Australia, homeowners can no longer refuse to install smart meters and a new round of additional rules will come into effect on 1 December.

By this date, installers over 170 meters will have to find a new source of income due to the company they work for losing its contract. Intellihub – a measurement company co-owned by giant private equity firms Brookfield and Pacific Equity Partners.

Smart meters aren’t that smart for underpaid plumbers

Richard, a Service Flow contractor, said: MWM the company “felt it was unethical to reduce rates beyond those based on the work we were doing and cost them the contract”.

Some said the news was shocking as Service Stream was said to have signed a four-year deal with Intellihub in August 2023.

MWM has seen a copy of the email dated August 1, 2023, confirming the announcement.

big jam

As we reported, low pay rates were, as one put it, “inducing technicians to rush jobs under unsafe conditions that could lead to serious injury or death.”

Many people believe that Intellihub’s recent rate cuts will make things worse.

Francis*, a Service Stream contractor, said: MWM: “Intellihub is squeezing companies like Service Stream under itself, and then Service Stream is squeezing us as technology.”

But he has little hope that change will come from above. “I don’t think anything will happen unless something tragic happens.

Like someone dying or property being damaged…

“In terms of people cutting corners, because the rates have dropped so dramatically, some technicians have told me things like, ‘Oh, if I have to, if I’m too behind, I’ll skip the tests altogether.'”

“I’m sure not every technician does this, but at the end of the day, if you rush people enough that they fall backwards and lose money because they can’t get enough work done because the jobs aren’t paid well enough, then of course people are going to skip steps.”

Alexander*, another Service Flow contractor, said that if things continue the way they are, “deaths from electrocution, houses burned down due to electrical failure” are possible.

Many electricians said the new rates, which flatten out the extra charge they previously charged for ‘additional services’, left them with much less incentive to repair electrical faults they discovered during installation.

Accelerated rollout speed bumps?

Both Francis and Alexander said the rapid rollout of smart meters could be negatively affected by an exodus of skilled technicians.

“With rates the way they are today and with the changes, I don’t see why anyone would want to stay in the industry,” Francis said.

Alexander said:

It is very difficult to see businesses being profitable based on the rates offered.

“But I feel like some people may unfortunately have to choose those options, and I think that’s what Intellihub is hoping for.”

“I think it is a very selective and deceptive decision to implement these new standards so close to Christmas, when everyone is relying on receiving these funds at that time of year.”

‘Important’: Major update on $4.8 billion renewable energy project

Roger*, who works for a company that will continue to work with Intellihub, agreed: “I think a lot of people will quit.”
He said his income would decrease by around 30 percent according to the new Intellihub contractor fee list given to him.
“I won’t go back to metering based on these numbers; it’s too unsafe and underpaid.”

He said the situation was reminiscent of the federal government’s pink strike plan, when the Rudd-Labor government introduced home isolation, which led to scores of deaths and hundreds of house fires.

Who is watching the market?

A few months ago, after hearing concerns from electricians about Intellihub’s growing dominance in the metering industry, MWM Data on the company’s market share was sought from three bodies that oversee Australia’s energy markets.

All three – the Australian Energy Market Commission, the Australian Energy Market Operator (AEMO) and the Australian Energy Regulator (AER) – said they did not have this information.

Households’ leading role in least-cost transition

Intellihub was also contacted and asked about its market share as well as its response to electricians’ complaints, but no response has yet been provided.

A few years ago, an Intellihub representative submitted an estimate to the ACCC that, as of 31 December 2022, the company had a roughly 20-30% share of smart meters deployed to energy retailers in the National Energy Market.

*All names have been changed upon the request of the interviewees.