If you’ve ever looked at an electricity bill and wondered how all those kilowatt-hours turn into dollars, you’ve already brushed up against Meter Data Management or MDM for short.
MDM is the behind-the-scenes process that turns raw meter readings into reliable information the market can trust.
What is Meter Data Management, in plain English?
Think of MDM as a library procedure for meter data. Meters in homes, businesses and industrial sites send readings.
Meter Data Management:
- Collects those readings
- Checks that they make sense and validates
- Fills small gaps when data is missing (using agreed methods)
- Organises everything so it lines up with the correct site and account
- Shares the results with the people and systems that need them.
When MDM is working well, everyone can agree on “how much energy was used, where and when”.
Why does Meter Data Management matter?
Because accurate data = fair outcomes. Retailers need trustworthy numbers to bill correctly. Network businesses use them to plan and maintain the grid. Generators and large customers rely on them for trading and risk. The market operator needs them to settle the market every day. If the data is delayed, incomplete or incorrect, costs potentially increase and confidence falls.
Good MDM also helps with the big changes happening on the grid, more solar, batteries and smarter buildings. Clean, timely data makes it easier to balance supply and demand, manage new tariffs and spot issues early.
Who’s involved in Meter Data Management?
- Metering Data Providers (MDPs) collect and quality-check the data.
- The market operator (AEMO in Australia’s NEM) runs the core market systems and uses that data for settlement.
- Retailers, networks and large customers use the same data for billing, planning and analytics.
Everyone works to shared rules so the numbers add up the same way for all parties.
What actually happens to your meter data?
Here’s the simple journey:
- Meters record usage at regular intervals (for example, every five minutes).
- Data is gathered and checked. If a meter missed a few intervals or produced a clearly odd spike, MDM flags it and, where appropriate, applies estimation or substitution using agreed methods.
- Data is lined up with the correct site. Each connection point has “standing data” that tells systems which streams belong together.
- Data is delivered to the market. Once validated and complete, the data is sent to the market operator so it can be used for settlement.
- Exceptions are fixed. If anything is out of place, reports highlight it so the appropriate team can correct and resubmit promptly.
Common myths - quickly cleared up
“Meter Data Management changes bills.”
Meter Data Management doesn’t make prices; it ensures the quantities (the kWh) are right so prices can be applied correctly.
“Estimation means guesswork.”
Estimation follows clear, agreed methods (for example, using similar days or recent history) and is used only when real data is missing or faulty.
“Solar and batteries make Meter Data Management too hard.”
They make it more interesting—but not impossible. With well-set rules and good standing data, modern MDM handles new technologies confidently.
What “good” Meter Data Management looks like
You’ll know Meter Data Management is healthy when:
- Your data is on time and complete
- Quality checks run automatically and are easy to audit
- Small issues are caught early (before they snowball)
- Everyone – retail, network, customer, market – sees the same numbers for the same site and day.
Where this series is going next...
This first post kept things friendly and non-technical. Next, we’ll gently step into how MDM plugs into Australia’s National Electricity Market (NEM) – who does what, how the daily cycle works and why the calendar matters.
After that, we’ll cover practical quality rules such as a common acronym in Meter Data Management called ‘VEE’ which stands for Validation, Estimation and Editing. In addition we’ll show how a well-designed MDM setup such as SATEC’s, provides the tools along with compliant structures as required under AEMO.
Frequently Asked Questions - Meter Data Management (MDM)
What is Meter Data Management (MDM)?
MDM is like a library procedure for meter data: it collects readings from meters, checks they make sense, fills small gaps using agreed methods, lines everything up with the correct site/account and shares the results with the systems and people that need them.
Why does Meter Data Management matter?
Accurate data means fair outcomes. Retailers bill correctly, networks can plan and maintain the grid, generators and large customers can trade and manage risk, and the market operator can settle the market; if data is delayed, incomplete or incorrect, costs potentially increase and confidence falls. Good MDM also supports grid changes like more solar, batteries, smarter buildings, new tariffs and early issue detection.
Who’s involved in the Meter Data Management process?
Metering Data Providers (MDPs) collect and quality-check data, the market operator (AEMO in Australia’s NEM) runs core market systems and uses the data for settlement and retailers, networks, and large customers use the same validated data for billing, planning and analytics – under shared rules so everyone gets the same numbers.
What happens if a meter misses intervals or produces odd spikes?
MDM flags gaps or anomalies and, where appropriate, applies estimation or substitution using clear, agreed methods (like similar days or recent history), aligns data with the correct “standing data,” delivers the tidy set to the market operator, and highlights exceptions so they can be corrected and resubmitted promptly; estimation is not guesswork.
