Germany's smart meter rollout could slow further as government reduces ambitions – media

Households installing smart meters could face higher costs in future, Tagesspiegel Background reported based on a draft amendment to Germany's energy industry act. The upper price limit for installation costs is set to rise from 30 to over 100 euros, with the lower price cap for operating smart meters to be raised from 10 to 30 euros, the newsletter service reported.

At the same time, the obligation to install smart meters would apply to fewer households in future. According to previous plans, all households with an electricity consumption of 6,000 kilowatt hours (kWh) should have a smart meter. The draft would raise this to an annual consumption of 10,000 kWh.

Energy management providers reacted critically. "The new draft law is an indictment of Germany - an absolute step backwards," said Bastian Gierull, head of Octopus Energy Germany. He added that many households would be unable to participate in the energy transition if the smart meter rollout slowed down, Tagesspiegel Background reported. Matthias Martensen, head of power provider Ostrom, also said the draft bill was a "clear step backwards," according to business daily Handelsblatt.

Smart meters are a perquisite for a more dynamic and flexible power system, as they allow customers to adapt their electricity demand to when there is plenty or alternatively low power supply. Dynamic electricity tariffs, for example, reward households that align electricity consumption to power prices (which reflect supply). More flexibility on the consumption side will be crucial as the share of fluctuating renewable power sources grows in the electricity system.

Germany has one of the lowest smart meter rollout rates in the EU, according to a 2023 report by the Ecologic Institute.