Germany opens cases against 77 companies failing smart meter rollout

Germany’s Federal Network Agency (BNetzA) has initiated proceedings against companies that are not complying with the country’s 20% quota for the rollout of smart metering systems.

The Agency says that numerous companies, most of which are SMEs, have so far failed to fulfil their obligations regarding the smart meter rollout. 

As a first step, proceedings were initiated against 77 companies that, according to figures available to the Federal Network Agency, have not yet begun the rollout.

BNetzA says the procedures aim to ensure compliance with legally mandated network expansion targets through the imposition of fines, which are determined based on the circumstances of each case, such as economic capacity, and the discretion of the Agency.

Commenting was Klaus Müller, President of the Federal Network Agency: “The installation of smart meters plays a central role in the digitalisation of our electricity system. 

“We are finding that many companies are not meeting the legally mandated expansion targets. As a first step, we are initiating proceedings today against those companies that have not yet begun the rollout. The Federal Network Agency is vigorously monitoring the implementation of the legal requirements.”

BNetzA says the digitalisation of electricity grids using smart metering is a crucial component for implementing the energy transition. 

Smart metering systems provide greater transparency regarding feed-in and feed-out and enable the secure integration of renewable energy plants and controllable consumers such as EVs or heat pumps into the electricity grid. Smart metering systems are also a prerequisite for consumers to be able to use dynamic tariffs.

The Metering Point Operation Act obliges basic metering point operators to roll out metering points with modern metering devices or intelligent metering systems.

BDEW lauds progress

According to BDEW, Germany’s industry association for energy and water, security requirements were set very ambitiously by Germany from the outset, meaning that the development, certification, and deployment of these devices took considerable time. 

Furthermore, the separation of roles between the metering point operator and the grid operator makes implementation in Germany more complex, which ultimately led to a significant need for coordination – especially in an automated mass process.

However, according to the Association, citing evaluations from BNetzA, this lengthy preparation is paying off. 

Said Kerstin Andreae, Chairwoman of the BDEW Executive Board: “The figures from the Federal Network Agency show that companies are on the right track. 

“The legally mandated rollout quota for 2025 will be met by an average of 23.3% across all companies – although not by every single company."

Commenting on the Agency’s proceedings, BDEW said that they tend to involve smaller businesses, accounting for only about 1% of the mandatory rollout; their impact on the overall quota is correspondingly small. 

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The Association said such companies regularly cite high IT and process requirements as well as resource constraints as the reason for the lack of implementation. It also points out that over 90% of companies of all sizes are meeting their rollout quotas or are well on their way to doing so.

However, contrary to the positive sentiment from BDEW in January, German newspaper Handelsblatt - citing a portal operated by the 'Smart Meter Initiative', which is a consortium of four young energy providers including Octopus Energy, Tibber, Rabot Energy, and Ostrom - reported that 85% of German metering point operators are failing to meet the quota. 

Specifically, they said, of the 814 operators in the country, 688 were not able to reach the threshold. 

E.ON as a front runner

BNetzA’s proceedings come weeks after German energy company E.ON announced the installation of their millionth smart meter, becoming the first in Germany to reach the milestone. 

With an average rollout rate of around 30% by the end of 2025, E.ON says they are among the frontrunners in the mandatory rollout. In the coming years, around 500,000 additional intelligent metering systems are to be rolled out annually.

Commenting at the time was Thomas König, Member of the E.ON Board of Management responsible for Energy Networks: “One million installed smart meters are a clear mandate for the future. 

“We will continue to drive the rollout forward, focusing on areas where smart meters create the greatest value: heat pumps, charging infrastructure, battery storage systems, photovoltaic installations and other flexible consumers. At the same time, it is clear that the smart meter rollout in Germany urgently needs to be simplified and accelerated – for the benefit of the grid and our customers.”

A month before their milestone announcement, the company announced its support for the mandatory installation of smart meters in all homes, according to reportage by WirtschaftsWoche.