Pre-Paid Smart Meters For All Households In 3 Years

New Delhi: Power consumption is as much a niggling issue for consumers as for distributing and transmitting agencies, thanks to non-standardised practices, thefts and pilferage. All that could change in the months ahead as the Centre has proposed to install pre-paid smart electricity meters in all households across the country in three years time.

Odisha, which has been at the forefront of bringing reforms in the power sector, has rolled out the prepaid service on a pilot basis earlier this year under Western Electricity Supply Company of Odisha (Wesco) in Sambalpur.

Under new system, consumers will have to purchase prepaid electricity cards from authorised vendors. Connection to the consumers would be disconnected automatically when the balance is exhausted. Consumers can get electricity soon after recharging their accounts, officials of Energy department said. A consumer’s unspent money in any particular month would be transferred to his account for the next month.

According to some earlier reports, the discoms will provide 1 per cent discount to people who opt for the prepaid service. The new service will make the billing system less time consuming and hassle-free.

Odisha has about 73 lakh electricity consumers, including 50 lakh from the below poverty line (BPL) category.

In a statement issued by the Power Ministry, installation of pre-paid metres will cut transmission and distribution losses. World Bank assessment pegs distortions in the power sector at around $86.1 billion or 4.1 per cent of India’s GDP annually.

“The move towards smart meters is a pro-poor step as consumers need not pay the whole month’s bill in one go, they can pay as per their requirements,” the government statement said, adding, manufacturing of smart prepaid meters will also generate skilled employment for the youth.

The step is likely to bring revolution in power sector by way of reduction in Technical and Commercial (AT&C) losses, better health of DISCOMs, incentivisation of energy conservation, ease of bill payments and doing away with the paper bills,” it said. AT&C loss was 21.84 per cent by the end of September 2018. The Centre has proposed to cut distribution losses  by 19 per cent by next year.

The State governments had earlier signed the ‘Power for All’ document and had agreed to supply power round the clock to their consumers.

Under this, “the distribution licensee shall provide 24×7 power to their consumers by 1st April 2019 or earlier. However the appropriate Commission in exceptional circumstances for the reasons to be recorded in writing may grant extension in this time period,” the statement added.