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Secure token systems bridge gap between legacy and smart grids

Utilities modernising metering infrastructure should avoid viewing legacy prepayment systems and smart metering platforms as competing technologies, industry experts said during a recent ESI Africa webinar hosted in partnership with STS Association and DLMS User Association.
Source: Pexels.
Source: Pexels.

The discussion, “Securing the Bridge Between Legacy and Smart Metering”, explored how interoperability, standardisation and secure data exchange are shaping the next phase of utility infrastructure.

Panellists, including Lance Hawkins-Dady, Sergio Lazzarotto and Franco Pucci, highlighted co-ordinated frameworks as essential for scalable, future-ready and secure metering ecosystems across global and regional markets.

Opening the session, Pombo-van Zyl editor-in-chief of ESI Africa said the webinar would explore how strategic alignment between STS and DLMS supports secure token transport, interoperability and co-ordinated roadmaps for smart metering.

Lance Hawkins-Dady, STSA Board chairman said the collaboration reflects the need for utilities to balance trusted legacy systems with modern smart infrastructure.

“STS remains a secure, reliable mechanism for prepaid revenue collection. This strategy supports a practical, structured transition, avoiding disruptive changes,” he said.

Standards over competition

He noted that more than 80 million STS-enabled devices remain active worldwide, making backward compatibility and investment protection critical for operators planning future metering strategies.

“There may be a perception in parts of the sector that, as smart metering advances, technologies like STS will naturally become obsolete,” Hawkins-Dady said. “What this liaison accomplishes is that it removes the notion of competition between standards and replaces it with co-ordination and synergy between different standards.”

Lazzarotto drew parallels between today’s metering transition and the standardisation journey in the personal computer sector, where common technologies such as USB and Bluetooth helped create more interoperable ecosystems.

“We were still miles away from this concept of interoperability,” he said, reflecting on early smart-metering deployments. “What I am trying to do is push for standardisation that is at the service of manufacturers.”

He said proprietary systems have created long-term operational risk for utilities, particularly when suppliers exit markets or discontinue support. Standardisation allows utilities to reduce vendor lock-in while enabling manufacturers to scale products more efficiently across regions.

“There is something known in the IT sector called plug-and-play,” Lazzarotto said. “I plug it and it plays. I don’t have to take care about how it works.”

Interoperability takes centre stage

Much of the discussion focused on interoperability and the technical integration of STS token technology into the DLMS/COSEM framework.

Pucci explained that the STS token itself has not changed. Instead, the token is now encapsulated within a DLMS object for transmission through smart metering networks.

“An STS token is still an STS token,” he said. “The only difference now is that you need to wrap it up in a DLMS COSEM object.”

He added that this approach gives utilities operational flexibility by maintaining both keypad entry and remote token-delivery options.

“You now have essentially two paths to take your token to the meter,” Pucci said. “If a network is down, you can still type in your token at your meter and get your credit.”

Securing smart infrastructure

Cybersecurity also emerged as a priority during the discussion. Lazzarotto warned that the increasing digitalisation of utility infrastructure requires stronger collaboration among standards bodies.

“We are speaking about strategic infrastructure,” he said. “We cannot play with that.”

He added that future work between the two organisations would focus heavily on secure architecture for electricity, water and gas applications.

The panel also highlighted the need for regional flexibility, particularly in Africa, where utilities operate under different regulatory and infrastructure conditions.

Lazzarotto said DLMS is working closely with regional standardisation organisations to accommodate country-specific requirements without fragmenting the broader framework.

“One thing is for sure,” he said. “There will be regional specificities and country specificities.”

The panellists repeatedly returned to the importance of open standards for utilities planning long-term smart metering rollouts.

“Do not get locked into a supplier,” Pucci warned during his closing remarks. “Use a system that you can purchase from as many suppliers as you wish.”

Hawkins-Dady said the collaboration ultimately gives utilities a lower-risk route into modernisation.

“It’s about protecting what already works while enabling what comes next,” he said. “Ultimately bringing a more connected, flexible and future-ready metering ecosystem.”

The on-demand recording is relevant for utilities, municipalities, metering specialists, revenue managers, manufacturers, system integrators and decision-makers responsible for smart-metering procurement, infrastructure upgrades and digital transformation strategies.

Source: African Press Organisation

APO is the sole press release wire in Africa, and the global leader in media relations related to Africa. With headquarters in Dakar, Senegal, APO owns a media database of over 150,000 contacts and the main Africa-related news online community.

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