Monday, February 10, 2025

Are Smart Meters Causing Heftier Electricity Bills

A total of 9.1 million consumers in Malaysia will be Smart Metered when the implementation exercise ends in 2026

In 2018, Malaysia jumped on the bandwagon with other countries such as the USA, EU, Japan, China, India, Australia and Singapore to implement Smart Meters. Installing Smart Meters in all homes is part of the Malaysian Government’s nationwide initiative, endorsed by the Energy Commission and currently being rolled out by Tenaga Nasional Berhad (TNB). Installation of this Smart Meter is part of the Grid of the Future Initiative where TNB reinvests a total of RM 9 billion to RM 10 billion annually to modernise the National Grid. Grid of the Future is a vision that entails a smart or intelligent electricity grid from generation to end-users with a two-way flow of energy and information for clean, efficient and reliable power. This allows customer participation and empowerment in energy production and consumption.

 What are Smart Meters?

A Smart Meter is a device that records electricity usage and communicates this information automatically to TNB via radio-frequency waves for monitoring and billing. They read daily energy usage and are said to provide more accurate bills for a smarter, greener and more energy efficient future.

Smart Meters are wired to provide accurate remote readings. They are the public face of the Advanced Metering Infrastructure (AMI), which is part of the smart grid. AMI uses 2-way communication between consumers and the utility provider 24/7/365 via three components: Smart Meters, communication network and the backend system that processes the billing data.

The Smart Meter will record power usage in a home, and the data is transmitted to utility poles fitted with extender bridges and repeaters. The Smart Meter uses Radio Frequency (RF) at 2.4 GHz, which is a similar frequency as Bluetooth and WiFi. To enable Smart Meter reading, TNB will erect RF pillars around the area concerned.

Unlike traditional meters which require manual reading by a TNB personnel, power consumption measurements on a Smart Meter can be done remotely. While the manual reading by TNB has worked for decades, the introduction of Internet of Things (IoT) has allowed TNB to begin rolling out the Advance Metering Infrastructure (AMI).

Benefits of Smart Meters

According to the TNB’s website, Smart Meters can help consumers keep an eye on how much energy they use at their premises. By using the interactive myTNB app and/ or the myTNB Portal, consumers can track how much energy they use and view how much their electricity bill may reach to make smarter, energy saving decisions.

Smart Meters – Has it really been that smart?

As of end of 2021, TNB reported that it had met its target of installing 1.8 million Smart Meters in the Klang Valley and Melaka. TNB began installing Smart Meters four years ago in Melaka and its installation will be expanded in stages so that 9.1 million consumers will have the Smart Meters by 2026.

With the installation of Smart Meters being widely expanded, have Smart Meters been as beneficial as they claim to be? International Business Review digs deeper into the case to find out more. The answers seem to be mixed.

While some consumers have reported positive outcomes from the usage of the Smart Meters such as being able to keep tabs on their electricity consumption while taking the necessary steps to control usage of electricity, some others have remained neutral saying they have not really felt a big impact of having a Smart Meter versus not having one.

On the other hand, we also noted quite a few negative comments since the installation of the the Smart Meters. A news report cited on the RojakDaily website on 29 May 2019 reads, “Recently, Malaysians have taken to social media to complain about the price hike on their electricity bill. Some have shared that their bill has increased up to 200 percent. Most consumers who complained were part of the Smart Meter pilot project by TNB.”

More recently, Wong Waihung whose residence is located at SS3 Petaling Jaya lamented, “Since the new Smart Meter was installed at my home early this year, I have been facing tremendous increase in my electricity bill. I used to pay about RM 400 – RM 500 for my electricity bill monthly, but now I am paying an average of RM 1,100 monthly. The increase is more than double. I have contacted TNB to check on the problem and they had come a few times, but the problem still persists.”

Yet another complaint was from Mr.Hong whose office is located at Taman Tun Dr Ismail, Kuala Lumpur, “We have noticed an increase of 30% in our electricity bills since the Smart Meter was installed. And we have not had any changes or increases in our office activities. This increase has caused our business to suffer.”

International Business Review contacted Tenaga Nasional Berhad (TNB) and the Energy Commission on this matter for comment but did not receive any feedback. We continued digging further and landed on the TNB’s FAQ page on its website. One question on the FAQ list was whether or not a consumer’s electricity bill will increase with the installation of the Smart Meter, to which the answer was that changes to the bill would be likely due to inaccuracy of the old meter due to aged components or tampering of the meter. Another reason for the increase is said to be due to the change in consumption pattern, where change in weather may cause an increase of usage of motorised electrical appliance such as the air-conditioner, refrigerators, heating appliances, washing machines, water dispensers and others.

On this matter, Wong added further, “TNB came to my home to check on the electricity meter and gave feedback on the aged components of the old meters causing inaccurate readings. While I think a minimal amount of increase would be acceptable, an increase in electricity bill that is more than double of what I used to pay is simply something I cannot digest and will not accept. I hope the authorities concerned will take a more serious look on this ridiculous billing,”

Smart Meters – Is it the way forward?

Technology has always been and should always be, an enabler. It cannot be used as an excuse to explain away human weakness and greed. As the saying goes “guns don’t kill people, people kill people”. Technology is a creation by humans and never at any point can it become our master. We should own the technology we create and not the other way around. And it should be used to reduce expenses, and lessen the burden on the people.

In line with this, Smart Meters should serve as a tool for consumers to make smart consumption decision and not burden consumers with heftier electricity bills. It should provide insights on how electricity is used, when it is used and ultimately how consumers will be able to cut costs and save energy in the process. A successful roll-out of a Smart Meter means ensuring these benefits are realised.

However, the electricity price increase many Malaysians are facing since the installation of the Smart Meters has caused much distress to the people. They have to continue paying their bills every month no matter how much, or risk having their power cut. TNB has not provided any feedback on this issue despite numerous attempts to contact them for comments.

We live in a country where people start complaining when the ‘mamak’ seller whose trying to make a living increases price of his roti canai by 20 sen. However, the authorities concerned with our electricity bills seem to be getting away too easily with more than a few hundred dollar increase since the installation of the Smart Meter.

This is a dangerous precedence if the slow totalitarian tiptoe into suffocating basic necessities is left unchecked. The country needs more open forums to discuss changes the government is making to our access for energy needs. We look forward to more active responses from TNB and ST on this matter, and will report any responses we get in the next edition of International Business Review.Technology per se cannot be used as an excuse.

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