VZBV: Users should receive compensation for smart meter problems

The switch to a dynamic electricity tariff often fails due to smart meter problems. Consumer advocates are therefore now demanding a new right to compensation.

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Smart Meter Gateway

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3 min. read

If smart meters do not function as intended, users should in the future be entitled to compensation, demands the Federation of German Consumer Organisations (VZBV). This is because it repeatedly happens that networked electricity meters are installed but then remain non-functional for months or even years. And this can lead to financial disadvantages for users, argues the VZBV in a current “policy paper” that c't has access to.

“For consumers, it is crucial that a smart meter is not only installed but also functions reliably,” said Marie Barz, energy market monitoring officer at the VZBV. “This is precisely where there are constant problems.” c't also recently reported in detail on the problems that can occur after the installation of smart meters. In extreme cases, meter numbers are swapped so that the smart meter data arrives at the wrong place.

Financial disadvantages arise for consumers primarily when they want to use a dynamic electricity tariff, but the tariff change fails due to issues with the smart meter. For the switch to be successful, the “intelligent metering system” must be registered with the metering point operator and grid operator and transmit measured consumption data every quarter of an hour. With a dynamic tariff, users can then adapt their consumption to fluctuating market prices.

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If the tariff change fails, users may not only miss out on the dynamic tariff, but they could also end up in a more expensive tariff than before. However, the financial disadvantage is difficult to quantify, writes the VZBV. Therefore, a “lump-sum compensation without complex damage evidence” would be sensible. This lump sum should be paid by the metering point operator. If the grid operator or the electricity supplier is responsible, they must reimburse the lump sum. The costs should not be passed on to grid fees, “so that the intended control function is undermined,” warn the consumer advocates.

A regulation in the Metering Point Operation Act (MsbG) could be based on § 58 of the Telecommunications Act, the VZBV also suggests. According to this, users of telecommunications services receive compensation if disruptions are not rectified immediately.

The VZBV cites three central problems as causes for smart meter issues: missing or significantly delayed feedback from distribution grid operators, the high number of 850 grid operators with different implementation progress, and highly complex and error-prone market communication processes among all involved parties. The consumer advocates base their findings on individual case descriptions from consumers, expert interviews with competitive metering point operators, and statements from the Federal Network Agency and the German Association of Energy and Water Industries (BDEV).

(cwo)

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This article was originally published in German. It was translated with technical assistance and editorially reviewed before publication.