Enedis, the company that runs the national electricity distribution network, aimed to replace all the old meters with the new Linkys, which can be read at a distance, by 2021.
Now it has lost a legal dispute with the mairie of Romilly-sur-Andelle, a Normandy village of 3,000 inhabitants in the Eure.
The mairie wanted to allow people a free choice, which was opposed by Enedis.
The Rouen administrative court found in favour of the mairie and ordered Enedis to pay €1,000 costs.
The Linky meters have been criticised for several reasons, including alleged health risks and data protection.
They are said to have advantages over current meters, including allowing real-time monitoring of usage patterns, which can help companies offer a bigger range of tailored offers.