Meters at 52,000 homes and businesses would be replaced over three years from April, PowerNet chief executive Jason Franklin said yesterday.
The project was the most significant change for consumers in a decade, he said.
''It's very exciting for us ... The connectivity gives us the ability to manage the network in real time and we will be able to see exactly where faults are occurring.
"We can also measure energy loss between substations and consumers, manage peak loads, and of course the data provided to retailers will enable them to work with their customers to change the way they use electricity in the future.''
Over three years, 76,000 electricity meters would be replaced with about 60,000 smart meters, he said.
Work had already begun on installing 504 ''relays'' needed for the project.
The job of installing the meters would be tendered out to an experienced technical provider, he said.
The electricity at homes or businesses getting new meters would need to be turned off to allow installation and it was hoped to do that in a systematic way, he said.
There would also have to be discussions with business owners and farmers about the best time to shut off their electricity so it had the least impact, he said.
Some people believe radiowaves or microwave emitted by devices such as Wi-Fi connections, cellphones and smart meters caused health problems for humans.
Mr Franklin said PowerNet was aware of those concerns, although the Ministry of Health was satisfied the low levels of radio frequency radiation emitted in short bursts from smart meters was not harmful and did not breach limits set out in the New Zealand radio frequency exposure standard.
''We have every confidence in this technology, which is proven and which we do not believe causes health issues. We wouldn't be putting it into homes if we weren't happy. But we are not going to force a meter on anyone who really doesn't want one.''
allison.rudd@alliedpress.co.nz
Smart meter
What is it: Electricity meter allowing two-way remote communication between meter and network company. Transmits periodically using low-level radio frequency radiation.
What does it do: Records electricity usage and detects faults in real time; eliminates need for meters to be read; gives retailers and distributors more flexibility on billing rates; provides customers with more detailed information about electricity consumption.
How much does it cost: Meters installed at no charge; cost recovered over time.
Will power bills rise: In general, there should be no cost increase to customers. However, there could be changes if existing meter has deteriorated and measuring inaccurately.
Can I still switch retailers: Yes.
Do I have to have a smart meter: Meters owned by retailers or electricity network asset companies. In contracts with consumers, retailers almost always reserve the right to replace meters at their discretion. If you do not want a meter at your house, discuss this with your retailer.
Source: Edited from New Zealand Electricity Authority smart meter factsheet.
