Smart metering systems (smart meters) provide precise data on energy consumption and enable the efficient control and optimised use of energy. They play a vital role in reducing energy demand and advancing the integration of renewable energy. Thus, they are not merely technical gadgets but essential building blocks for a flexible, transparent and sustainable energy system in companies.

The German Bundestag and Bundesrat revised the law for the reboot of the digitalisation of the energy transition (GNDEW), adopted in May 2023. In this context, the Metering Point Operation Act (MsbG) was simplified to accelerate the installation and operation of smart metering systems. The goal is to equip all consumers with modern or smart electricity meters by 2032.

These smart meter devices, also referred to as smart meters or smart electricity meters, enable consumers to record their electricity consumption or feed-in, e.g. from photovoltaic systems, in detail and analyse it in real time. Based on the continuous collection of this data, energy can be used more efficiently.

At the same time, consumers benefit from dynamic tariffs: electricity prices vary depending on the time of day and grid load. This allows, for example, companies to strategically plan and automatically control energy use. Energy-intensive devices could then mainly be used during periods of lower electricity prices to reduce energy costs.

Moreover, the installation of smart meters improves the integration of controllable consumers such as electric vehicles, heat pumps or industrial processes into the electricity grid. Smart metering systems thus facilitate the use of renewable energy and, through their ability to communicate with the grid operator, help improve grid stability.

Smart metering systems consist of three components:

• Digital meter device with electronic display
• Communication module 
• Smart meter gateway (with certified security profile)

Only the combination of these three elements makes the electricity meter smart. The digital meter device precisely measures electricity consumption. The communication module securely and regularly transmits the data to the metering point operator, the grid operator, and, where applicable, to the energy supplier. The gateway manages secure data transmission that meets the particularly high data protection and IT security standards of the Federal Network Agency.

The metering technology provides various types of measurements. In addition to pure consumption data, smart electricity meters also provide information on feed-in to the grid, load profiles, reactive power or grid load in real time. Each measurement type delivers different insights for metering point operators, grid operators or consumers. Commercial consumers, for example, gain a comprehensive overview of their energy behaviour in order to derive measures for energy efficiency and automation of operational processes. 

One of the advantages of smart electricity meters is the transition from fixed to dynamic electricity prices. To contribute to the energy transition and reduce electricity procurement costs, companies must first invest in the installation of smart electricity meters. For many, especially small and medium-sized enterprises, the question of costs is therefore paramount. 

The legislator has stipulated annual maximum limits for installation and operation. In the case of optional installation of a smart metering system, the costs are limited to a maximum of 30 euros per year. In the case of mandatory installation, the price ceilings depend on the annual consumption (in kWh) and electricity generation (in kW), and range from 40 to 140 euros. If the actual operating costs exceed these, they are partially covered by the grid operators. In addition, smart metering systems are subsidised by the Federal Ministry for Economic Affairs and Climate Action (BMWK) to promote the energy transition.

Although smart metering systems are legally mandatory and economically sensible for companies – particularly those with higher energy consumption or generation capacities – the rollout is still in its early stages. The total number of metering locations operated by metering point operators in Germany is 53,215,269. According to the Federal Network Agency, only 2.18 percent of these are currently (as of 17 April 2025) equipped with smart metering systems.

A decisive factor for the successful nationwide rollout of smart electricity meters is reliable and secure data communication. This is where Deutsche Telekom’s IoT solutions come in. With technologies such as NB-IoT and LTE-M, developed specifically for low-bandwidth and high-building-penetration applications, Telekom offers stable and energy-efficient network connections for operating smart meters. The various IoT networks and tariffs allow for precise customisation based on deployment location and data volume. 

Moreover, Telekom provides a comprehensive infrastructure for device management and data analysis with its Cloud of Things platform. The management of IoT SIM cards, monitoring of data usage and control of end devices take place via a central portal. This represents a significant advantage, especially for metering point operators, municipal utilities or energy service providers that operate hundreds or thousands of devices. The T IoT Hub enables efficient orchestration of heterogeneous device fleets – from simple sensors to highly complex electricity meters.

The transition to smart metering systems is not only legally mandated but also a key lever for operational energy efficiency and economical electricity use. Companies investing in the introduction of smart meters now benefit from dynamic electricity tariffs, automated consumption controls and the ability to optimally integrate generation systems into the grid. 

For business customers, it is advisable to develop a comprehensive rollout strategy for smart metering systems as soon as possible. This includes identifying affected properties, selecting suitable partners for technology and communication, complying with legal requirements, and ensuring the future development of new business models based on collected energy data. In pilot projects within selected areas, companies can gain experience and evaluate the economic viability of the systems before making larger investments.