Dutch grid operators have decided to purchase important parts of the so-called ‘smart meters’ (digital energy meters) from a Chinese company. This has been criticized because it further increases the Dutch dependence on China. From January 1, people are no longer allowed to refuse the smart meter.
This concerns a tender for 4 million electricity meters, made by the various Dutch grid operators, who purchase jointly. The Chinese company Kaifa Technology, which is one-third owned by a Chinese state-owned company, won the tender. In total, almost 400 million euros are involved.
A smart meter not only measures how much electricity you use, but also how much you supply and at what times. The meter automatically passes this on to the energy company.
‘Abnormally low registration’
Kaifa will supply the ‘measurement module’ for the smart meters. That is the part that actually measures. A separate tender is still underway for another component, a GSM modem that then shares the information with the network operators.
Several European parties missed the mark. One of them, Iskraemeco, tried to stop the tender earlier this year. According to the originally Slovenian company, the Chinese’s pricing is not fair because they allegedly undercut the price for the raw materials. However, the court in The Hague rejected that objection. “The preliminary relief judge agrees with the network operators in their position that they are not obliged to exclude abnormally low registrations,” is stated in the ruling.
The news of the tender came out via The Telegraphwho was pointed out by engineer Henry Lootens of Fedet, the Dutch trade association of 162 manufacturers in the electrical engineering sector. “I am not against smart meters,” he explains by telephone. “But given the geopolitical developments, I am a fan of the fact that we can still make things ourselves. And when I came across this, I thought: it can’t be true that we no longer even order that from Europe?”
According to a spokesperson for Netbeheer Nederland, the price played an important role in the choice of Kaifa and no concessions were made to safety. Kaifa is also a company that has been purchasing parts for digital energy meters with satisfaction for some time. “It all went according to European guidelines.”
The tender is nevertheless sensitive.
Major shareholder supplies Chinese army
China’s major shareholder state-owned company, China Electronics, also supplies telecom equipment to the Chinese military. It is excluded from investments by Dutch pension funds and insurers.
In addition, there are concerns about possible data flows to China. Because smart meters are all about sharing detailed information about power consumption live. They are digital devices that can communicate wirelessly and that require regular software updates.
From January 1, citizens are obliged to share how much electricity they consume and supply themselves. In practice, this means an obligation to accept the ‘smart meter’. Those who do not want a smart meter can opt for a simpler digital meter. It has no communication function, so you have to pass on the readings yourself. Both a digital and a smart meter keep track of how much electricity you supply back if you have solar panels.
And that’s what it’s all about. Because an analogue meter with a dial does not keep track of how much you return. The disc then simply rotates backwards. As a result, energy companies cannot charge feed-in costs. Grid operators have been offering smart meters for a few years, but many people refuse them. They are afraid of higher energy bills and sometimes also have privacy concerns.
The House of Representatives wants information
MPs from CDA, VVD, D66 and the Christian Union have now submitted questions. They want to know, among other things, whether the intelligence services AIVD, MIVD or NCTV have been asked for advice about this tender. And exactly which data is shared.
The importance of the part that Kaifa will supply is and what possible malicious parties could do with it is still a subject of discussion. It is possible to connect the measuring module directly to a router, so that information can be shared directly from the module. But according to a spokesperson for Netbeheer Nederland, the device cannot be turned off remotely. “It is not a switching part.”
This is different with solar panels and inverters from China, whose software runs in a Chinese cloud. ICT experts have previously shown that this makes it possible to destabilize the power grid remotely.
Dimitri van Zandvliet is less concerned about the cybersecurity of smart meters. He is chairman of the Dutch CISO association, the association of chief information security officers who are primarily responsible for digital resilience within companies and organizations. “I assume that the grid operators have tested these things,” he says. “And nothing can be turned off remotely.”
Van Zandvliet is concerned that the Netherlands is gradually becoming more dependent on “state actors outside Europe who are less democratic.” “Soon you will have the meters from China, the inverters from China, the solar panels from China and they will charge your (Chinese) BYD car. Do you feel comfortable with that? Or do you want to invest in European technology?”
The journalistic principles of NRC