Smart meter functionality: how intelligent measuring devices work

How much electricity, water and gas do we actually consume? And how can we reduce our energy usage? These are two questions companies must address in times of continuously rising energy prices.

So-called smart meters could quickly provide answers in such cases. In this article, we explain smart meter functionality and how these intelligent measuring devices are already supporting businesses. 

 A smart meter is essentially nothing more than an intelligent meter that records and stores energy consumption (electricity, gas, heat) and directly transmits the measured values. For instance, the network operator receives the electricity consumption in kWh directly. This means the industrial business no longer needs to manually read the meter and send the reading to the network operator for the annual bill. Similarly, the network operator no longer needs to send an employee to read the electronic electricity meters, eliminating costly, time-consuming and CO₂-intensive service visits.

But what exactly is smart meter functionality? It consists of two elements: a digital three-phase meter (intelligent metering systems) and a “smart meter gateway” (communication unit). The digital electricity meter records the meter reading every 15 minutes, while the smart meter gateway transmits the data to the network operator. This communication unit not only processes and determines the measured values but can both send and receive data. Recipients of such data include: 

• Meter operators 
• Distribution and transmission network operators 
• Electricity suppliers 

Smart meter functionality also includes how the devices communicate. The smart meter gateway uses various communication technologies, such as: 

• Mobile networks 
• Powerline communication (PLC) 
• High-frequency mesh networks (RF) 

Smart meters are often installed by a local meter operator in basements or other areas with weak signal and no nearby internet connection. Seamless connectivity to mobile devices such as smartphones, tablets or laptops is often difficult. 

Nevertheless, special IoT solutions help the network operator receive and evaluate all collected data. For this reason, they often rely on the NarrowBand IoT (NB-IoT) mobile standard with strong building penetration, enabling them to receive meter data even from the basement. In addition, LTE connectivity is also considered a reliable connection for a smart meter. 

To measure the energy generated by solar panels and fed into the grid, there is a WiFi energy meter. This device communicates via the WiFi network. This allows the user to measure both the forward and reverse flow of energy at any time.

There are already numerous companies from various industries that rely on smart meter functionality. In the following lines, we provide a few specific examples of how intelligent metering systems help companies reduce their energy costs. 

• Targeted shifting of consumption processes: Industrial companies can fully control their load management through smart meter functionality. For example, they shift particularly energy-intensive machinery to periods of low grid load and lower energy prices. This helps to flatten peak loads (peak load management, peak shaving) and reduce usage charges. 

• Detecting anomalies faster: Smart meters can detect unusual consumption patterns, such as defective machines or unexpectedly high peak loads. This allows companies to identify problems early and respond accordingly. 

• Energy audits and legal requirements: Smart meters support energy audits and compliance with legal requirements such as EN 16247-1. They record energy consumption accurately and provide load profiles in 15-minute intervals, making it possible to prepare audits in a targeted and efficient manner. 

• Reducing the CO₂ footprint: By using smart meters, companies can lower their CO₂ footprint. This is achieved, for example, by using renewable energy sources more efficiently and optimising self-consumption. 

• Accurate billing: A small mistake when reading the electricity meter can significantly affect billing! Estimated consumption figures can also lead to substantial costs. With smart meters, companies benefit from precise billing based on actual consumption. This reduces back payments and enables the use of variable electricity tariffs based on time of day or renewable energy availability. 

You now know how smart meters work and how companies can use them to reduce their operational and energy costs. But is every company actually required to install a smart meter? Yes, because in the context of the energy transition, legislation (in principle) obliges all companies to convert to smart electricity meters by 2032. This primarily affects companies that meet one of the following criteria: 

• Annual consumption exceeds 6,000 kWh 
• Installed generation capacity of over 7 kW from electricity-generating systems (e.g. photovoltaics) 
• Controlled consumption device (e.g. heat pump) is in use 

In theory, meter operators can also install a smart meter at companies with consumption under 6,000 kWh. In practice, however, this lies within the discretion of the meter operator. If they choose to do so, they must adhere to strict pricing guidelines. However, the local meter operator is also responsible for the installation and costs of the device. 

The billing models themselves depend on annual consumption. For companies with an annual consumption of up to 10,000 kWh, the smart meter records electricity usage over the entire year. If the consumption exceeds 10,000 kWh, the smart meter transmits the data daily to the responsible network operator. 

A smart meter is now much more than just a digital measuring device – it is a key element for greater transparency, efficiency, and sustainability in energy consumption. For many companies, upgrading is not only beneficial but also legally required. Those who act now benefit from automated processes, improved cost control, and are well prepared for the demands of the energy transition.