When reading his Origin Energy bill last week, Paul Brownlie was angered to find he was being charged for a smart meter that is yet to be installed.

The meters are being installed by Victoria’s five electricity distributors - Jemena, United Energy Distribution, SP AusNet, CitiPower and Powercor - and are designed to save energy and reduce electricity costs.

Mr Brownlie said he was frustrated that he was having to pay for something he didn’t have.

He said he wasn’t against the technology, but didn’t see why he had to pay for it already.

“Why am I paying $30 extra a bill when I don’t even have a smart meter?

“It’s levied at 30 cents a day, which is ongoing.”

A State Government spokesman said more than 2.5 million smart meters would be installed during the next four years in all Victorian homes and small businesses.

“The Australian Energy Regulator has determined that it is equitable to spread these costs across all customers, saving Victorian families significant up-front costs,” he said.

“This is similar to the way that costs are charged for other equipment associated with a customer’s electricity supply, including distribution wires, poles and transformers.”

He said smart meters would bring an end to estimated bills and would give families more control over what they paid.

“They will ensure power is restored more quickly during blackouts and will make it easier to have power connected when moving house.”