Regulatory Aspects of Smart Metering

Smart metering and smart grids belong to the ‘hot’ topics which have been attracting more and
more attention in recent years, promising to deliver benefits to consumers, producers and network
operators alike. However, the exact definition of smart metering is often ambiguous, and it is sometimes
unclear what classifies an electricity meter or an electricity grid as smart. It is also debated
whether smart metering makes real economic sense, and if so, how it should be promoted.
KEMA was commissioned by NARUC/ERRA to assist ERRA’s Licensing/Competition Committee by
providing insight into the key aspects of smart metering, taking a closer look at the fundamental
characteristics of smart metering, the potential benefits and barriers of its implementation and the
issues related to deploying smart metering in a market environment. With respect to the latter, the
objective is also to highlight the major key drivers and success factors for smart metering deployment
as well as to look at the role of regulation for a successful smart metering deployment.
This paper relies on KEMA‘s experience from several projects as well as knowledge and insights
gained in different countries. Practical examples are included throughout the paper, where appropriate.
The appendix includes two exemplary dedicated country case studies with a focus on the results
of the cost-benefit assessment.


KEMA International B.V.

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  CBA     cost-benefit analysis     Licensing     market models     smart grids     Time-of-Use Pricing