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1. In order to complement energy efficiency measures adopted pursuant to Directives (EU) 2023/1791 and (EU) 2024/1275 and to further empower final customers, Member States or, where Member States have so provided, the regulatory authorities shall strongly recommend that natural gas undertakings optimise the use of natural gas by, inter alia, providing energy management services, and introducing smart metering systems in accordance with paragraph 2 of this Article, that are interoperable in particular with consumer energy management systems and with smart grids, in accordance with the applicable Union data protection rules.

2. Member States shall proceed with the deployment in their territories of smart metering systems only after a cost-benefit assessment which shall be undertaken in accordance with the principles laid down in Annex II, identifying the net benefits to customers that arise from the use of smart meters and of signing up for smart meter-enabled offers. In their cost-benefit assessment, Member States may make separate assessments and evaluate the impact of deploying smart metering systems for different categories of customers and customer groups, such as household customers, microenterprises, SMEs and industry.

3. Member States that proceed with the deployment of smart metering systems shall adopt and publish the minimum functional and technical requirements for the smart metering systems to be deployed in their territories, in accordance with Article 19 and Annex II. Member States shall ensure the interoperability of those smart metering systems, as well as their ability to provide output for consumer energy management systems. In that respect, Member States shall have due regard to the use of the relevant available standards, including those enabling interoperability, to best practices and to the importance of the development of smart grids and the development of the internal market for natural gas.

4. Member States that proceed with the deployment of smart metering systems shall ensure the provision of clear and understandable information and advice to customers about the benefits of smart meters after consulting consumer bodies and other relevant organisations. That information shall at least:

(a) include advice on how customer groups can use their smart metering systems to improve their energy efficiency;

(b) address the specific needs of customers affected by energy poverty or vulnerable customers as referred to in Article 26 of this Directive, such as persons with a visual or hearing impairment and persons with low levels of literacy, including via engagement strategies as defined in Article 2, point (55), of Directive (EU) 2023/1791;

5. Member States that proceed with the deployment of smart metering systems shall ensure that final customers contribute to the associated costs of the deployment in a transparent and non-discriminatory manner, while taking into account the long-term benefits to the whole value chain, including the benefits to network operations, when calculating the network charges applicable to or fees paid by customers. Member States or, where Member States have so provided, the designated competent authorities shall regularly monitor such deployment in their territories to track the delivery of benefits to customers.

6. Where the deployment of smart metering systems has been negatively assessed as a result of the cost-benefit assessment referred to in paragraph 2, Member States shall ensure that the assessment is revised in response to significant changes in the underlying assumptions and in response to technological and market developments. Member States shall notify to the Commission the outcome of their updated cost-benefit assessment as it becomes available.

7. The provisions in this Directive concerning smart metering systems shall apply to future installations and to installations that replace older smart meters. Smart metering systems that have already been installed, or for which the ‘start of works’ began, before 4 August 2024, may remain in operation over their lifetime. However, smart metering systems that do not meet the requirements of Article 19 and Annex II shall not remain in operation after 5 August 2036.

8. For the purpose of paragraph 7, ‘start of works’ means either the start of construction works on the investment or the first firm commitment to order equipment or other commitment that makes the investment irreversible, whichever occurs first. Buying of land and preparatory works such as obtaining permits and conducting preliminary feasibility studies shall not be considered as ‘start of works’. For take-overs, ‘start of works’ means the moment of acquiring the assets directly linked to the acquired establishment.