Bernau Utilities Hit 20% Milestone: What Small Grid Operators Can Learn from the Smart‑Meter Rollout

7 min read

In late 2025, the Federal Network Agency (Bundesnetzagentur) confirmed: Germany has reached the nationwide legal requirement of a 20 percent smart meter rollout. The total stands at exactly 20.2 percent—but the BNetzA has initiated enforcement proceedings against 77 grid operators due to insufficient rollout progress. Smaller network operators with fewer than 30,000 metering points are averaging just 8.2 percent. Stadtwerke Bernau demonstrates how a hybrid approach—starting externally and scaling internally—can succeed.

Key Takeaways

The BNetzA Balance Sheet at End-2025: 20.2 Percent and 77 Open Proceedings

The Metering Point Operation Act sets a clear roadmap: by the end of 2025, 20 percent of mandatory installations must be equipped with intelligent metering systems. In February 2026, the Federal Network Agency published its assessment—and the results are mixed. The 20.2 percent threshold has been met, formally achieving the first legislative milestone. Yet the aggregated figure masks a structural imbalance between large and small grid operators—one that is expected to deepen in the coming years.

Grid operators with more than 500,000 metering points average around 25 percent—surpassing the requirement and already advancing to the next phase. Mid-sized operators are close to the 20 percent mark. Small operators with fewer than 30,000 metering points (over 600 nationwide) reach only 8.2 percent on average. The gap is now wider than ever since the rollout began.

The Federal Network Agency has responded decisively, launching enforcement proceedings against 77 grid operators where, according to its data, no significant rollout has taken place. Among those named are Netzgesellschaft Potsdam GmbH at 9.8 percent, TWL Netze GmbH in Ludwigshafen at 11.2 percent, Netze Duisburg GmbH at 11.4 percent, and Nürnberger N-ERGIE Netz GmbH at 13.1 percent. Formal warnings with potential fines have already been issued. For the affected municipal utilities, 2026 will no longer be a planning year—but a year of enforcement sprint.

Bernau Municipal Utilities: How the Mandatory Quota Was Achieved

Bernau is situated on the northern edge of Berlin’s “bacon belt”, and the municipal utilities supply roughly 40,000 residents with electricity, gas, water and heat. In the BNetzA statistics they are classified as a small grid operator. Nevertheless, the utilities have met the mandatory quota by the end of 2025 – thanks to a clear two‑stage approach that can serve as a blueprint for other small operators.

In the first phase, 2024 to 2025, Bernau relied on an external service provider for the installations. About 300 smart metering systems were therefore installed within the legal deadline. The external route was necessary because internal capacity would not have been sufficient to deliver the quota on time. At the breaking point between planning certainty and speed, choosing the service partner proved the right move – even though it meant higher unit costs than a purely internal handling.

For 2026 the utility has shifted its strategy. By hiring Jürgen Weber as a permanently employed meter installer, Bernau will handle the installations entirely in‑house from now on. A further 500 metering systems are planned for the current year. The reasons for the switch are greater flexibility in scheduling, reduced reliance on external capacity, and leaner processes through close integration with its own customer service. According to the utility’s calculations, the investment in the in‑house position pays for itself already in the first year thanks to saved service‑provider margins.

Fabian Schultz, head of the market and service division at Bernau Municipal Utilities, summed up the situation in a statement from March 2026: the smart‑meter rollout is a challenging project for many metering point operators. The wording is defensive yet honest – it reflects the reality of hundreds of small utilities that all have to meet the same obligation without the resources of a hyperscaler.

Why small grid operators are lagging behind

The gap between 25 percent for large operators and 8.2 percent for small ones isn’t about reluctance—it’s about structural differences that can’t simply be negotiated away. Three key factors come into play.

Sources: BNetzA quarterly surveys, BDEW Smart Meter Rollout Info Day 2026, Stadt-und-Werk industry analysis

The first factor is simple math: an operator with 20,000 metering points needs to install around 4,000 devices to meet the 20-percent target. An external team manages 30 to 60 installations per week. That’s 70 to 130 weeks of fieldwork—two to three years. Those who started late can’t catch up without buying external capacity, and by 2026, that’s become scarce as all small operators compete for the same service providers.

The second factor is IT integration. Smart metering systems must connect to a BSI-certified gateway. Data sharing with metering point operators, suppliers, grid operators, and distribution system operators runs through standardized interfaces defined in the EDI@Energy specification. Small municipal utilities rarely have in-house teams for this integration, so they either purchase complete packages or rely on industry software like Schleupen CS.MW or Kisters BelVis. Both work, but they come with licensing fees and integration effort.

Source: Bundesnetzagentur quarterly smart metering system survey, February 2026

The third factor is customer communication. A smart meter is installed in a home or apartment—the customer must accept appointments, grant access, and understand the new technology. Large grid operators have call centers, online booking, and automated reminder systems. Small municipal utilities often still rely on letters and phone follow-ups. That costs appointments, follow-ups, and time per installation. In short, it explains the quota gap better than any tool debate ever could.

The Hybrid Approach: Start External, Scale In-House

Bernau demonstrates a model that’s realistic for many small municipal utilities: begin with external service providers to meet the mandatory rollout targets, then gradually build internal capacity for the next expansion phase. The advantage is clear—initial costs remain financially predictable, and the risk of missing quota deadlines is mitigated by the service partner. Once in-house expertise is established, per-unit costs drop significantly.

Operationally, however, the transition involves more than just adding a new role to the organizational chart. The in-house technician requires training on BSI-certified gateways, access to the utility’s rollout management system, integration with billing and market communication systems, and thorough documentation for every installation—securely archived to meet BSI audit requirements. Bernau factored in these operational demands alongside building its technician team. IT integration was coordinated with the existing metering point operator service provider.

For customer outreach, Bernau plans to offer voluntary installations starting Q2 2026 for households with annual consumption of at least 3,000 kilowatt-hours. A one-time fee of 100 Euro applies, and customers can request installation via a simple online form on the utility’s website. This delivers two benefits at once: additional rollout volume toward the next BNetzA quota and stronger customer engagement through a visible digitalization initiative. While Bernau didn’t invent this model, its clean execution within the small network operator segment is rare.

2026: How the EnWG Amendment Will Affect Municipal Utilities

Parallel to ongoing rollout implementation, lawmakers are preparing an update to the Metering Point Operation Act as part of the broader Energiewirtschaftsgesetz (EnWG) amendment. Details will be discussed at the BDEW Smart Meter Rollout 2026 information day. The key direction is clear: stricter requirements for market communication, new data transmission rules for Redispatch 2.0 processes, and more consistent implementation of dynamic tariff models under Section 41a EnWG.

For small municipal utilities, this means the one-time smart meter installation is not the end of compliance obligations. New data formats must be supported in-house billing software, and communication with market partners must shift to the updated EDI@Energy specifications. IT systems must provide real-time interfaces to balancing group managers. This is less a rollout challenge than an architectural one—and the impact will be harder on smaller, less IT-integrated utilities.

Six Lessons for Other Municipal Utilities

The Bernau case and the comparison with the 77 operators under BNetzA proceedings yield six concrete recommendations for small municipal utilities that must push ahead with their rollout in 2026 and 2027:

1. Think two-tier, not either-or. The fastest route to hitting your quota is through external service providers, while the most sustainable is building internal capacity. Those who see these two modes as sequential—rather than choosing one—save money and gain planning certainty.
2. Factor in IT integration early. A smart meter without seamless integration into billing, market communication, and grid management systems only generates rollout statistics—not operational value. IT integration belongs at the start of planning, not the end.
3. Calculate service provider margins realistically. External installation partners currently charge €60 to €100 more per installation than an in-house solution. With thousands of units, this adds up to a substantial cost block often underestimated in initial calculations.
4. Automate customer communication. Every missed appointment, unclear registration, and phone inquiry costs hours. Utilities that don’t digitize appointment scheduling and reminders lose 20 to 30 percent of their potential installation speed.
5. Take BNetzA reporting obligations seriously. Quarterly reports aren’t just a box-ticking exercise—they’re the basis for imposing fines. Those who report accurately and document progress significantly reduce their risk of penalties.
6. Use voluntary expansion as leverage. Bernau’s model—voluntary installations for customers with annual consumption over 3,000 kilowatt-hours—can be replicated by any municipal utility. It generates additional volume, eases mandatory quota pressure in the coming years, and strengthens customer loyalty.

Conclusion

For small municipal utilities, the smart meter rollout isn’t a technical challenge—it’s an organizational test. The technology is standardized, gateways are certified, and installation processes are well-established. What sets utilities apart is their ability to plan resources, engage service providers on time, and integrate IT in parallel with field operations. Stadtwerke Bernau has shown that even starting with just 300 devices in the first phase works—if the second phase is planned from the outset.

For the 77 grid operators currently under BNetzA proceedings, the options are clear. Within the next few months, they must present a robust rollout plan that credibly demonstrates how they’ll close the quota gap by the end of 2026. Those who succeed avoid fines. Those who don’t pay not only financially but also lose trust with customers and regulators. The roadmap for 2026 and 2027 leaves no room for error.

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Source cover image: Pexels / Robert So