Siemens Cashpower 2000 Pre Paid Meter User 19
Blair Capellas
According to a report published by Brian Krebs, in 2009 a Puerto Rico electricity supplier asked the FBI to investigate large-scale thefts of electricity related to its smart meters. The FBI found that former employees of the power company and the company that made the meters were being paid by consumers to reprogram the devices to show incorrect results, as well as teaching people how to do it themselves.[47] Several hacking tools that allow security researchers and penetration testers verify the security of electric utility smart meters have been released so far.[48]
One technical reason for privacy concerns is that these meters send detailed information about how much electricity is being used each time. More frequent reports provide more detailed information. Infrequent reports may be of little benefit for the provider, as it doesn't allow as good demand management in the response of changing needs for electricity. On the other hand, widespread reports would allow the utility company to infer behavioral patterns for the occupants of a house, such as when the members of the household are probably asleep or absent.[58] Furthermore, the fine-grained information collected by smart meters raises growing concerns of privacy invasion due to personal behavior exposure (private activity, daily routine, etc.).[18] Current trends are to increase the frequency of reports. A solution that benefits both provider and user privacy would be to adapt the interval dynamically.[59] Another solution involves energy storage installed at the household used to reshape the energy consumption profile.[60][61] In British Columbia the electric utility is government-owned and as such must comply with privacy laws that prevent the sale of data collected by smart meters; many parts of the world are serviced by private companies that are able to sell their data.[62] In Australia debt collectors can make use of the data to know when people are at home.[63] Used as evidence in a court case in Austin, Texas, police agencies secretly collected smart meter power usage data from thousands of residences to determine which used more power than "typical" to identify marijuana growing operations.[64]
Ross Anderson wrote about privacy concerns "It is not necessary for my meter to tell the power company, let alone the government, how much I used in every half-hour period last month"; that meters can provide "targeting information for burglars"; that detailed energy usage history can help energy companies to sell users exploitative contracts; and that there may be "a temptation for policymakers to use smart metering data to target any needed power cuts."[73]
Smart meters allow dynamic pricing; it has been pointed out that, while this allows prices to be reduced at times of low demand, it can also be used to increase prices at peak times if all consumers have smart meters.[77] Additionally smart meters allow energy suppliers to switch customers to expensive prepay tariffs instantly in case of difficulties paying. In the UK during a period of very high energy prices from 2022, companies were remotely switching smart meters from a credit tariff to an expensive prepay tariff which disconnects supplies unless credit has been purchased. While regulations do not permit this without appropriate precautions to help those in financial difficulties and to protect the vulnerable, the rules were often flouted.[55] (Prepaid tariffs could also be levied without smart meters, but this required a dedicated prepay meter to be installed.) In 2022, 3.2 million people were left without power at some point after running out of prepay credit.[78]
The Australian Victorian Auditor-General found in 2015 that 'Victoria's electricity consumers will have paid an estimated $2.239 billion for metering services, including the rollout and connection of smart meters. In contrast, while a few benefits have accrued to consumers, benefits realisation is behind schedule and most benefits are yet to be realised'[83]
In March 2018 the National Audit Office (NAO), which watches over public spending, opened an investigation into the smart meter program, which had cost 11bn by then, paid for by electricity users through higher bills.[91][92] The National Audit Office published the findings of its investigation in a report titled "Rolling out smart meters" published in November 2018.[93] The report, amongst other findings, indicated that the number of smart meters installed in the UK would fall materially short of the Department for Business, Energy & Industrial Strategy (BEIS) original ambitions of all UK consumers having a smart meter installed by 2020. In September 2019, smart meter rollout in the UK was delayed for four years.[94]
A counter-fraud officer at Ofgem with oversight of the roll-out of the smart meter program who raised concerns with his manager about many millions of pounds being misspent was threatened with imprisonment under section 105 of the Utilities Act 2000, a provision intended to protect national security.[96][97] The Employment Appeal Tribunal found that the law was in contravention of the European Convention on Human Rights.[98]
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