What is the Metering Operation Act (MsbG)
The Metering Operation Act (Messestellenbetriebsgesetz, MsbG) is a central German law that manages the operation of metering points and deployment of modern metering devices and metering systems such as smart meters. First adopted in August 2026 as part of the Act on the Digitalization of the Energy Transition, it established the legal foundation for smart metering and digital energy infrastructure. Since then, it has been updated several times including amendments in 2021 and further adjustments in 2025, reflecting the evolving requirements of the energy transition and especially the smart meter rollout in Germany.
Why the Messestellenbetriebsgesetz matters in the energy transition?
The Messestellenbetriebsgesetz is crucial for the digital energy transition. It establishes the regulatory framework for the development and operation of smart metering infrastructure, capable of capturing and transmitting consumption data in real time, thereby enabling dynamic tariffs and flexible energy services. This builds the foundation for grid transparency, system stability and the integration of renewable energy. By defining market roles and technical requirements, it also creates a predictable framework for utilities, technology providers and platform companies to scale digital energy solutions.
The MsbG’s relevance will grow in 2026 and beyond as the system shifts to flexible, data-driven operation, where secure, interoperable metering becomes vital for flexibility markets and decentralized energy management.
What does the MsbG regulate?
The MsbG defines the regulatory framework for how metering infrastructure is installed, operated and integrated into the German energy system. It specifies which types of metering systems must be used, how metering points are to be operated and which market actors are responsible for these tasks. The law clearly distinguishes between default and competitive metering point operators, assigning responsibilities across the entire meter lifecycle, from installation and operation to maintenance and replacement.
It also sets binding requirements for data communication and data security. These include the use of certified smart meter gateways (SMGW), encrypted communication and clearly defined access rights for authorised market participants. The law also includes provisions on pricing and cost control, introducing statutory price caps to protect consumers and ensure an economically efficient rollout of digital metering infrastructure.
Metering Systems under MsbG
The Metering Point Operation Act defines modern measuring devices and the smart metering systems built on them as the foundation for digital metering in Germany.
The basis is the modern measuring device (mME). These digital meters replace outdated analog devices, enable more accurate measurements, create basic transparency and set the minimum standard for most metering points. However, they do not have their own communication unit.
Building on this, intelligent metering systems (iMSys) are deployed, commonly referred to as smart meters. An iMSys consists of a modern measuring device combined with a smart meter gateway (SMGW) and optional control boxes. These components enable secure, encrypted, bidirectional communication between the metering point and authorized market participants such as grid operators and energy suppliers. iMSys devices support advanced use cases such as remotely readable meter readings, time-variable or dynamic tariffs and grid- and market-oriented energy management.
Who is affected by the Metering Operation Act?
The Messstellenbetriebsgesetz affects each energy player differently. Let’s take a look at the most important ones:
End customers
End customers, including households and businesses, gain access to more transparent consumption data and, in most cases, become eligible for dynamic electricity tariffs. Certain customer groups are subject to the mandatory installation of intelligent metering systems, depending on their consumption levels or generation capacity.
Metering point operators
Metering point operators are at the center of the MsbG. The law distinguishes between default metering point operators and competitive metering point operators.
Default metering point operators are generally tied to the local grid operator and manage the operation of metering points as a standard service within a grid area.
Competitive metering point operators can be commissioned by customers to take over metering point operations and additionally offer value-added services such as detailed consumption analyses, energy monitoring apps and advice on dynamic tariffs.
Grid operators
Grid operators benefit from improved availability of metering data, which supports grid transparency, forecasting, congestion management and the integration of decentralized energy resources. While grid operators are not necessarily responsible for metering point operation, they rely on compliant metering infrastructure for efficient system operation.
Energy suppliers and digital energy service providers
Energy suppliers and digital energy service providers use the consumption data and forecasts provided by smart metering systems to manage their balancing groups and portfolios efficiently. Based on this, they develop dynamic tariff models, flexibility products and energy management services that provide benefits to both customers and grid operators.
Why the MsbG is still important in 2026
The Metering Point Operation Act not only regulates metering technology but also defines how metering data enters the energy system and under which conditions it can be accessed and used securely. A successful smart meter rollout is not the end goal but rather a portal to more advanced use cases, such as load management, flexibility activation and increasingly automated, digitized grid operations. Without a legally-defined, standardized and secure metering system, many digital energy applications could not be implemented reliably or at scale.
By early 2026, around 20 percent of metering points are expected to be equipped with smart meters as part of the mandatory rollout. Smaller metering point operators in particular have experienced some delays. As a result, the focus is shifting from pure installation to active use of the available metering data. Energy suppliers and digital energy service providers use this data and forecasts to manage their balancing groups and portfolios efficiently and to develop dynamic tariff models, flexibility products and energy management solutions.
From 2028, significantly higher coverage (around 50 percent) is expected, allowing metering data to contribute even more to a data-driven, coordinated operation of the energy system. At the same time, rising electrification and the growing number of decentralized generation and storage units make the use of this data increasingly important for secure, flexible and efficient grid and market processes.
Expert insights and future outlook on Messstellenbetriebsgesetz (MsbG)
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Expert insights and future outlook on Messstellenbetriebsgesetz (MsbG)
As the smart meter rollout progresses, the biggest challenge will be the transition from installing infrastructure to effectively using metering data. So far, the pace of the rollout has been primarily determined by the capacities of metering point operators, including personnel and organizational processes. Future success will depend on how well metering data can be integrated into operational and market processes. gridX Energy Market Expert Irene Guerra Gil comments:
“The real value of smart meters emerges not during the rollout phase, but when metering data is systematically integrated into operational and market processes. The MsbG provides the foundation for secure, interoperable data flow, which is critical for flexibility markets, decentralised energy assets and a truly digital energy system.”
With the rollout reaching scale, smart meters are increasingly acting as secure data gateways, enabling flexibility, decentralised asset management and more dynamic grid operation. The challenge now is less about hardware and more about integrating metering data efficiently and securely across platforms and operational systems.
Looking ahead, regulatory refinements around data access and flexibility markets are expected, but the MsbG will remain the foundation for digital, data-driven energy system operation, supporting automation, market innovation and scalable energy management.
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