The Ontario Smart Metering Initiative: What does it mean for Ontario's residential consumers?

Author

Julie Girvan

Organization

Consumers Council of Canada (CCC)

Published

2009

Summary

The Ontario Government is currently in the process of facilitating its commitment, made in 2004, to install smart electricity meters in all Ontario homes and businesses by 2010. The introduction of smart meters will be accompanied by flexible, time-based pricing expected to encourage a conservation culture in Ontario intended to reduce overall electricity use and peak demand. Ontario electric local distribution companies have been implementing the smart meter initiative (SMI) under the direction of the Ministry of Energy and Infrastructure and the Ontario Energy Board. The objective of the initiative is to benefit Ontario electricity consumers through potential bill reductions resulting from both the use of less electricity and shifting use from peak demand periods. Environmental benefits are also expected, as reducing peak demand helps, in turn, reduce the use of fuel sources considered most detrimental to the environment. Ontario consumers stand to benefit from the initiative, but are also responsible for the costs. Customers are currently paying for the deployment of the meters, but in the absence of time-based pricing the benefits are, to date, unrealized. This paper explores the Ontario policy initiative to install smart meters in all homes and businesses by 2010. The focus is on the expected impacts on residential consumers. The Ontario initiative as initially envisioned is described in detail, and an update provided on the progress to date. Costs and benefits for Ontario consumers are explored and informed by the results of pilot programs undertaken both in the U.S. and in Ontario. The paper also identifies potential problems with the rollout of the Ontario SMI as well as recommended solutions.

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OCA Funded Research
This research received funding support through the Office of Consumer Affairs' Contributions Program.

Contact information

Source: Consumer Policy Research Database