Smart grids drag utilities into the swamp of online privacy

November 19th, 2009

The smart grid is rapidly becoming a reality in the US, as utilities have been installing networked monitoring and control equipment, both in their own facilities and in their customers’ homes. The pace of these installations should accelerate due to recent initiatives from the Department of Energy and the state of California; across the border, the Province of Ontario will see smart meters installed in every home by the end of next year. Ontario’s Information and Privacy Commissioner has now worked with members of the Future of Privacy Forum to analyze the privacy implications of these initiatives. The resulting report indicates that there are a variety of potential privacy concerns, some of which are best addressed before the deployments begin in earnest.

Nearly half of the report simply reviews what the smart grid entails, specifically from the consumer perspective. In general terms, a smart meter, combined with smart appliances and other hardware, will allow consumers to obtain fine-grained information about their energy use patterns, and exercise a greater degree of control over them. As the report notes, this can have a wide variety of positive consequences, from more efficient use of energy resources to lowered electric bills. So the general message is that concerns about privacy shouldn’t derail plans to deploy smart grids.