NSW to privatise power meters
The proposed sale comes after the industry regulator, the Australian Energy Market Commission, called for metering activities to be separated from the energy distributors as part of a broader industry overhaul.
It also comes as Victoria's metering sector is set to open up from 2015.
At present, energy distributors own the metering assets, but the door is to be opened to new entrants.
These changes will pave the way for the likes of Macquarie Bank to move in, since it is already a significant participant in this sector in Britain. In New Zealand, electricity meters are run as a stand-alone businesses, with a range of companies participating.
The planned sale comes as the NSW government is expected to move after the 2015 state elections to privatise its power distributors.
Victoria has mandated the roll-out of so-called smart meters but the NSW government has held back due to the high cost and uncertain pay-off.
Energy retailers are the natural owners and operators of metering services, Macquarie told a federal government review last year. Via Capital Meters Ltd, it is a large participant in Britain, where it has financed an unspecified number of smart meters and more than 1 million "dumb" meters.
It was an operator of gas metering services for parts of British Gas for several years, for example.
An estimated 33,000 large industrial and commercial meters are to be sold by Ausgrid and Endeavour, which are mostly in NSW.
"It is a legacy of the retail business," said the chief executive of Networks NSW, Vince Graham, which operates the Ausgrid and Endeavour businesses. "With the sale of the retail arm, we no longer have that relationship with the customer. It is profitable, but we don't want to invest further."
Mr Graham said advisers were being sought on the proposal, with a decision on whether to sell the business due by the end of the year and such a sale to be finalised by mid-next year.
Any sale would be "in the tens of millions of dollars", he said.
Frequently Asked Questions about this Article…
The NSW government plans to sell the national electricity metering arms of Ausgrid and Endeavour Energy, reorganising meter ownership so those assets move out of the distributors. About 33,000 large industrial and commercial meters—mostly in NSW—are expected to be part of the sale.
The sale follows an industry push, including a recommendation from the Australian Energy Market Commission (AEMC), to separate metering activities from energy distributors. The reorganisation also fits with the NSW government's broader plan to privatise parts of the power sector after state election timing mentioned in the article.
The article names Ausgrid, Endeavour Energy, Networks NSW (which operates those businesses), the NSW government and the AEMC. It also highlights potential private participants such as Macquarie (via Via Capital Meters Ltd) and notes examples from Britain and New Zealand where stand‑alone metering businesses operate.
An estimated 33,000 meters are to be sold, described in the article as large industrial and commercial electricity meters, most of which are located in New South Wales.
According to the article, advisers were being sought on the proposal, with a decision on whether to sell the business due by the end of the year and any sale to be finalised by mid‑next year. The wider move to privatise power distributors was anticipated to follow state election timing discussed in the piece.
Victoria has mandated a smart‑meter roll‑out, but the NSW government has so far held back because of high costs and an uncertain payoff. The article notes that private firms have financed smart meters abroad, and separation of metering could open NSW to similar commercial participation.
Yes — the article suggests firms like Macquarie Bank could move in because they already participate in metering in Britain (via Via Capital Meters Ltd), having financed an unspecified number of smart meters and more than a million 'dumb' meters. Separating metering from distribution would open the market to new entrants and investors.
Investors should monitor formal decisions and timelines (adviser appointments, the end‑of‑year decision and the mid‑next‑year completion mentioned), regulatory moves from the AEMC, any formal sale process for Ausgrid and Endeavour’s metering arms, and which private buyers emerge—because the sale could create investment opportunities in standalone metering businesses and related services.
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