Department of Primary Industries – Australia

Following entry is a record in the “Catalogue of Catastrophe” – a list of failed and troubled projects from around the world.


Dept. of Primary Industries – Governement of Victoria – Australia
Project type : Smart meters
Date : Jan 2010 Cost :$2.25B AUD

Synopsis :
Costs to deploy smart electrical meters to all households and small businesses in Victoria, Australia balloon from $800M to $2.25B.  A review by the Auditor-General questioned whether the project could now deliver any value to the residents of Victoria.  The report noted that “the AMI project has not used the checks and balances that would ordinarily apply to a major investment directly funded by the state.”

Contributing factors as reported in the press:
Lack of governance and oversight.  Lack of analysis (in the cost benefit analysis).  Lack of risk assessment.  Poor stakeholder engagement.  Insufficient resources allocated to the project to ensure its success.

Reference links :

  1. Vic Opposition calls for smart meter halt
  2. Auditor-General not happy with smart meter roll-out
  3. Towards a smart grid