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Smart metering
European Union Electricity Market Glossary

 

 

Annex I to the Electricity Directive 2009/72/EC requires the EU Member States to roll out electricity smart meters to 80% of consumers by 2020, unless the result of a Cost Benefits Analysis (CBA) is negative.

 

For the gas sector, Annex I of the Gas Directive 2009/73/EC requires Member States to prepare a timetable for the roll-out of gas smart meters based on a CBA (with no indication of a timeline).

 

 

Directive 2009/72/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in electricity and repealing Directive 2003/54/EC

Annex I, point 2

 

Member States shall ensure the implementation of intelligent metering systems that shall assist the active participation of consumers in the electricity supply market. The implementation of those metering systems may be subject to an economic assessment of all the long-term costs and benefits to the market and the individual consumer or which form of intelligent metering is economically reasonable and cost-effective and which timeframe is feasible for their distribution.


Such assessment shall take place by 3 September 2012.


Subject to that assessment, Member States or any competent authority they designate shall prepare a timetable with a target of up to 10 years for the implementation of intelligent metering systems.


Where roll-out of smart meters is assessed positively, at least 80 % of consumers shall be equipped with intelligent metering systems by 2020.


The Member States, or any competent authority they designate, shall ensure the interoperability of those metering systems to be implemented within their territories and shall have due regard to the use of appropriate standards and best practice and the importance of the development of the internal market in electricity.

 

The so-called 'Winter Package' defines a 'smart metering system' as an electronic system that can measure energy consumption, providing more information than a conventional meter, and can transmit and receive data for information, monitoring and control purposes, using a form of electronic communication (Article 2(18) of the Proposal for a Directive of the European Parliament and of the Council on the internal market for electricity (recast) on common rules for the internal market in electricity (recast), 30.11.2016, COM(2016) 864 final 2016/0380 (COD)).

 

'Conventional meter' in this context is 'an analogue meter or an electronic meter with no capability to both transmit and receive data' (Article 2(17) of the Proposal for a Directive).

 

Detailed rules on smart metering are envisioned in Articles 19 - 22 of the said Proposal for a Directive (see box below).

 

Article 16(7) of the Proposal for a Regulation of the European Parliament and of the Council on the internal market for electricity (recast), 30.11.2016, COM(2016) 861 final 2016/0379 (COD), moreover, stipulates that where the EU Member States have implemented the deployment of smart metering systems, regulatory authorities may introduce "time differentiated network tariffs, reflecting the use of the network", in a transparent and foreseeable way for the consumer.

 

Article 9(2)(a) of the Energy Efficiency Directive establishes the obligation of EU Member States to ensure that the "objectives of energy efficiency and benefits for final household consumers are fully taken into account when establishing the minimum functionalities of the meters and the obligations imposed on market participants".

 

It is for the EU Member State to decide which energy-efficiency objectives and which benefits to final consumers are taken into account when setting minimum standards for smart meters (Commission Staff Working Document Guidance note on Directive 2012/27/EU on energy efficiency, amending Directives 2009/125/EC and 2010/30/EC, and repealing Directives 2004/8/EC and 2006/32/EC Articles 9 - 11: Metering; billing information; cost of access to metering and billing information Accompanying the document Communication from the Commission to the European Parliament and the Council Implementing the Energy Efficiency Directive – Commission Guidance SWD/2013/0448 final).


Commission Recommendation 2012/148/EU of 9 March 2012 on preparations for the roll-out of smart metering systems (OJ L 73, 13.3.2012, p. 9–22) aims to facilitate the roll-out of smart meters, and provides common minimum functional requirements for the smart metering of electricity.

 

The requirements concern access and frequency of meter readings for the consumer, the network operator and any 3rd party designated by the consumer.

 

The meters must provide two-way communication for maintenance and control, support advanced tariff systems, allow for remote control of the power supply and/or power limitation, and provide import/export facilities.

 

Furthermore, meters must provide secure data connections, fraud prevention and detection.

 

Top 5 functionality requirements of smart meters across Europe, according to the ACER/CEER Annual Report on the Results of Monitoring the Internal Electricity and Gas Markets in 2015, Consumer Protection and Empowerment of November 2016 (p. 44), are as follows:
- information on actual consumption,
- remote reading of the meters by the operator,
- bills based on actual consumption,
- access to information of consumption on customers' demand,
- customer control of metering data.

 

According to the above ACER/CEER Annual Report minimal technical and other requirements for smart meters are defined in legislation in eighteen EU Member States in the case of electricity and in ten EU Member States in the case of gas.

 

Most of these Member States require that smart meters provide information on actual consumption, make billing based on actual consumption possible and ensure easy access to information for household consumers.

 

However, functionality requirements differ widely across Member States.

 

ACER/CEER Annual Report of 22 October 2018 on the Results of Monitoring the Internal Electricity and Natural Gas Markets in 2017 (Consumer Empowerment Volume) refers, for example, to smart meters with remote consumption control functionality, which adapt the operation of specific home appliances, such as heat pumps, to hourly electricity prices, in order to benefit from shifting consumption to lower-price periods.

 

The said Report of 22 October 2018 looks, moreover, into the issues of:

 

- time intervals for consumption data stored in the smart meters,

 

- time-of-use contracts.

 

According to the said Report of 22 October 2018:

 

- the shortest time interval for consumption data stored in the smart meter varied across the EU Member States, the most commonly used was 15 minutes (in 14 countries), in 3 EU Member Staes it was 30 minutes and in further 3 EU Member States it amounted to 1 hour,

 

- customers in 13 EU Member States can sign up to time-of-use contracts with intra-day/weekdays/weekend energy price differentiation, while in 8 countries customers can choose real-time or hourly energy pricing.

 

According to the aforementioned ACER/CEER Report of November 2016, the roll-out of gas smart meters is still limited.

 

However, as pointed out in the CEER Report of 22 July 2019 (Case Studies on Implementing Technology that Benefits Consumers in the CEP, Ref: C19-IRM-16-04) in Sweden all customers have smart meters since 2009. According to the said Report, as from 2012 all customers in Sweden were also entitled “to opt for a meter upgrade in order to get hourly metering, however, very few customers have done so. By 2025 all meters will be upgraded to support hourly settlement, and thus enable customers to opt for dynamic price contracts. In this specific situation, customers who already want such contracts may request an upgrade of their smart meters ahead of the deadline”.

 

 

ITRE’s propositions of February 2018

 

 

Interestingly, the Report of the European Parliament’s Committee on Industry, Research and Energy (ITRE) of 27 February 2018 on the proposal for a directive of the European Parliament and of the Council on common rules for the internal market in electricity (recast) (COM(2016)0864 – C8-0495/2016 – 2016/0380(COD)) focused its draft amendments on issues of final customers’ privacy in the area of smart metering.

 

The original European Commission’s proposal only stated that “the privacy and data protection of final customers is ensured in compliance with relevant Union data protection and privacy legislation” while the ITRE added expressly that “it shall in particular be possible for the final customer to have access to information on the identity of other parties which access their personal data, and on the moment of access, in order to be able to enforce their rights under Union data protection legislation”

 

The ITRE also modified the European Commission’s proposals on customers’ access to metering data on electricity input and off-take.

 

According to the EU executive’s proposal the said data must be made available to customers via a local standardised communication interface and/or remote access, or to a third party acting on customers’ behalf, in an easily understandable format.

 

The ITRE additionally requires that this this access must be “as close to real time as possible” and must allow customers to compare deals on a like-for-like basis.

 

The ITRE amendments impose, moreover, the requirement that final customers must be able to download their metering data or transmit them to another party at no additional cost and in accordance with their right to data portability under Union data protection legislation.

 

 

 

Proposal for a Directive of the European Parliament and of the Council on the internal market for electricity (recast) on common rules for the internal market in electricity (recast), 30.11.2016, COM(2016) 864 final 2016/0380 (COD)).

 

Article 2(18)

 

'smart metering system' means an electronic system that can measure energy consumption, providing more information than a conventional meter, and can transmit and receive data for information, monitoring and control purposes, using a form of electronic communication.

 

Article 19
Smart metering

 

1. In order to promote energy efficiency and empower customers, Member States or, where a Member State has so provided, the regulatory authority shall strongly recommend that electricity undertakings and aggregators optimise the use of electricity, inter alia by providing energy management services, developing innovative pricing formulas, or introducing interoperable smart metering systems or smart grids, where appropriate.

 

2. Member States shall ensure the implementation of smart metering systems in their territories that shall assist the active participation of customers in the electricity market. Such implementation may be subject to a cost-benefit assessment which shall be undertaken according to the principles laid down in Annex III.

 

3. Member States that proceed with deployment shall adopt and publish the minimum functional and technical requirements for the smart metering systems to be rolled out in their territories in line with the provisions laid down in Article 20 and Annex III. Member States shall ensure the interoperability of these smart metering systems as well as their connectivity with consumer energy management platforms. To this respect, Member States shall have due regard to the use of relevant available standards including those enabling interoperability, best practices and the importance of the development of the internal market in electricity.

 

4. Member States that proceed with smart metering deployment shall ensure that final customers contribute to the associated costs of the roll-out in a transparent and non- discriminatory manner. Member States shall regularly monitor this deployment in their territories to track the evolution of costs and benefits for the whole value chain,including the delivery of net benefits to consumers.

 

5. When the deployment of smart metering is negatively assessed as a result of cost-benefit assessment referred to in paragraph 2, Member States shall ensure that this assessment is revised periodically in response to changes in the underlying assumptions and to technology and market developments. Member States shall notify to the responsible Commission services the outcome of their updated economic assessment as it becomes available.

 

Article 20

Smart metering functionalities

 

Where smart metering is positively assessed as a result of cost-benefit assessment referred to in Article 19(2), or systematically rolled out, Member States shall implement smart metering systems in accordance with European standards, the provisions in Annex III, and in line with the following principles:

 

(a) the metering systems accurately measure actual electricity consumption and provide to final customers information on actual time of use. That information shall be made easily available and visualised to final customers at no additional cost and at near-real time in order to support automated energy efficiency programmes, demand response and other services;

 

(b) the security of the smart metering systems and data communication is ensured in compliance with relevant European Union security legislation having due regard of the best available techniques for ensuring the highest level of cybersecurity protection;

 

(c) the privacy and data protection of final customers is ensured in compliance with relevant Union data protection and privacy legislation;

 

(d) meter operators shall ensure that the meter or meters of active customers who self-generate electricity can account for electricity put into the grid from the active customers' premises;

 

(e) if final customers request it, metering data on their electricity input and off-take shall be made available to them, via a local standardised communication interface and/or remote access, or to a third party acting on their behalf, in an easily understandable format as provided for in Article 24, allowing them to compare deals on a like-for-like basis;

 

(f) appropriate advice and information shall be given to final customers at the time of
installation of smart meters, in particular about their full potential with regard to meter reading management and the monitoring of energy consumption, and on the collection and processing of personal data in accordance with the applicable Union data protection legislation;

 

(g) smart metering systems shall enable final customers to be metered and settled at the same time resolution as the imbalance period in the national market.

 

Article 21

Entitlement to a smart meter

 

1. Where smart metering is negatively assessed as a result of cost-benefit assessment referred to in Article 19(2), nor systematically rolled out, Member States shall ensure that every final customer is entitled to have installed or, where applicable, to have upgraded, on request and under fair and reasonable conditions, a smart meter that complies with the following requirements:

 

(a) is equipped where technically feasible with functionalities referred to in Article 20, or with a minimum set of functionalities to be defined and published by Member States at national level and in line with the provisions in Annex III,

 

(b) is interoperable and able to deliver the desired connectivity of the metering infrastructure with consumer energy management systems in near-real time.

 

2. In the context of a customer request for a smart meter pursuant to paragraph 1, Member States or, where a Member State has so provided, the designated competent authorities shall:

 

(a) ensure that the offer to the final customer requesting the installation of a smart meter explicitly states and clearly describes:

– the functions and interoperability that can be supported by the smart meter and the services that are feasible as well as the benefits that can be realistically attained by having that smart meter at that moment in time;

– any associated costs to be borne by the final customer;

 

(b) ensure that it is installed within a reasonable time and no later than three months after the customer's request;

 

(c) regularly, and at least every two years, review and make publicly available the associated costs, and trace their evolution as a result of technology developments and potential metering system upgrades.

 

Article 22

Conventional metering

 

1. Where final customers do not have smart meters, Member States shall ensure that they are provided with individual conventional meters that accurately measure their actual consumption.

2. Member States shall ensure that final customers are able to easily read their conventional meters, either directly or indirectly through an on-line interface or through another appropriate interface.

 

Annex III

Smart Meters

 

1. Member States shall ensure the implementation of intelligent metering system in their territories that may be subject to an economic assessment of all the long-term costs and benefits to the market and the individual consumer or which form of smart metering is economically reasonable and cost-effective and which timeframe is 
feasible for their distribution.


2. Such assessment shall take into consideration the methodology for a cost-benefit analysis and the minimum functionalities for smart metering defined in the Commission Recommendation 2012/148/EU as well as best available techniques for ensuring the highest level of cybersecurity and data protection.


3. Subject to that assessment, Member States or, where a Member State has so provided, the designed competent authority, shall prepare a timetable with a target of up to 10 years for the deployment of smart metering systems. Where roll- out of smart meters is assessed positively, at least 80 % of final customers shall be equipped with smart metering systems within 8 years from the date of their positive assessment or by 2020 for those Member States that have initiated deployment before entering into force of this Directive.

 

Recitals 33 - 36 

 

(33) Engaging consumers requires appropriate incentives and technologies such as smart metering. Smart metering systems empower consumers as they allow them to receive accurate and near-real time feedback on their energy consumption or generation allowing them to manage it better, participate in and reap benefits from demand side response programmes and other services, and lower their electricity bill. Smart metering also enables distribution system operators to have better visibility of their networks, and consequently reduce their operation and maintenance costs and pass those savings to the distribution tariffs which are ultimately borne by consumers.

 

(34) When it comes to deciding at national level on the smart metering deployment, it should be possible to base this on an economic assessment. Should that assessment conclude that the introduction of such metering systems is economically reasonable and cost-effective only for consumers with a certain amount of electricity consumption, Member States should be able to take that into account when proceeding with implementation.

 

(35) Member States that are not systematically rolling out smart metering should give the possibility to consumers to benefit, upon request and under fair and reasonable conditions, and by providing them with all the relevant information, from the installation of an electricity smart meter. Where consumers do not have smart meters, they should be entitled to meters that fulfil the minimum requirements necessary to provide them with the billing information specified in this Directive.

 

(36) In order to assist consumers' active participation in the electricity market, the smart metering systems to be deployed by Member States in their territory should be interoperable, not represent a barrier to switching of supplier, and should be equipped with fit-for-purpose functionalities that allow consumers to have near-real time access to their consumption data, modulate their energy consumption and, to the extent that the supporting infrastructure permits, offer their flexibility to the network and to energy services companies, be rewarded for it, and achieve savings in their electricity
bill.

 

 

 

European Parliament, Committee on Industry, Research and Energy, Provisional Agreement Resulting from Interinstitutional Negotiations on the Proposal for a directive European Parliament and of the Council amending Directive 2012/27/EU on energy efficiency (COM(2016)0761 – C8-0498/2016 – 2016/0376(COD)), 17 July 2018

 

Article 10 of the Directive 2012/27/EU is amended as follows:

 

(a) the title is replaced by the following:


‘Billing information for gas and electricity’;


(b) the first subparagraph of paragraph 1 is replaced by the following:


1. Where final customers do not have smart meters as referred to in Directives 2009/72/EC and 2009/73/EC, Member States shall ensure, by 31 December 2014, that billing information is reliable, accurate and based on actual consumption, in accordance with point 1.1 of Annex VII, for electricity and gas, where this is technically possible and economically justified.

 

 

 

 

 

 

 

IMG 0744

    Documentation    







 

 

Energy Efficiency DirectiveArticle 9(2)(a)

 

Report on the proposal for a directive of the European Parliament and of the Council on common rules for the internal market in electricity (recast) (COM(2016)0864 – C8-0495/2016 – 2016/0380(COD)), European Parliament, 27 February 2018, Committee on Industry, Research and Energy

 

Proposal for a Directive of the European Parliament and of the Council on the internal market for electricity (recast) on common rules for the internal market in electricity (recast), 30.11.2016, COM(2016) 864 final 2016/0380 (COD), Article 2(18), Articles 19 - 22, Recitals 33 - 36, Annex III

 

Proposal for a Regulation of the European Parliament and of the Council on the internal market for electricity (recast), 30.11.2016, COM(2016) 861 final 2016/0379 (COD), Article 16(7)

 

ACER/CEER Annual Report on the Results of Monitoring the Internal Electricity and Gas Markets in 2015, Consumer Protection and Empowerment, November 2016, p. 44-45 

 

Review of Current and Future Data Management Models, CEER report, Ref: C16-RMF-89-03, 13 December 2016

 

Commission Staff Working Document Guidance note on Directive 2012/27/EU on energy efficiency, amending Directives 2009/125/EC and 2010/30/EC, and repealing Directives 2004/8/EC and 2006/32/EC Articles 9 - 11: Metering; billing information; cost of access to metering and billing information Accompanying the document Communication from the Commission to the European Parliament and the Council Implementing the Energy Efficiency Directive – Commission Guidance /* SWD/2013/0448 final */

 

Commission Recommendation 2012/148/EU of 9 March 2012 on preparations for the roll-out of smart metering systems

 

 

 

 

 

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Last Updated on Wednesday, 14 August 2019 18:27
 

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