Lok Sabha Question No. 3592 (UNSTARRED), answered on 2022-03-24
Subject: Retail Power Tariff to Consumers
Ministry: POWER
Asked by: P. C. Mohan

## GOVERNMENT OF INDIA MINISTRY OF POWER LOK SABHA UNSTARRED QUESTION NO.3592

## ANSWERED ON 24.03.2022

## RETAIL POWER TARIFF TO CONSUMERS

3592. SHRI P.C. MOHAN:

Will the Minister of POWER be pleased to state:

- (a) whether the Union Government has asked the Governments of State/UTs to request the State Electricity Regulatory Commissions  (SERC)  to consider reducing  the  retail  power  tariff  to  consumers  who  purchase  power  through prepayment meters.
- (b) if so, the details thereof;
- (c) the time by which such kind of policy would be implemented;
- (d) whether  the  Union  Government  proposes  to  provide  subsidy  or  financial assistance to the States for implementation of such scheme;
- (e) if so, the details thereof and if not, the incentive for the State Governments to implement such scheme;
- (f) whether the Union Government or State Governments would bear the cost of prepayment meters and the ancillary infrastructure; and
- (g) if so, the details thereof?

## A N S W E R

THE MINISTER OF POWER AND NEW & RENEWABLE ENERGY (SHRI R.K. SINGH)

- (a) to (c) :  Ministry of Power, vide its letter dated 16.01.2020, had asked all the States/UTs to request their respective State Electricity Regulatory Commissions (SERCs)  to  consider  reduction  in  power  retail  tariff  to  the  consumers  for  the power  purchased  through  prepayment  meters  and  also  requested  that  the necessary changes in the relevant Regulations/Orders/Mechanism to reduce the cost  of  power  in  case  of  advance  payments/prepayment  by  any  entity  or consumers  should  be  implemented  within  six  months  of  issuance  of  the  said letter.

………..2.

(d) to (g) :    The installation of meters including pre-payment meters falls under the  purview  of  respective  Discoms.  However,  Government  of  India  is  also providing  funds  to  the  States  under  various  schemes  for  installation  of  smart meters in  the  prepayment  mode.  Presently,  Smart  Meters  in  pre-paid  mode  are being installed under various schemes of Government of India as well as by the State Utilities themselves. Government of India is providing funding to the States for implementation of smart prepaid metering under National Smart Grid Mission (NSGM)  and  the  'Revamped  Distribution  Sector  Scheme:  (RDSS)'  notified  on 20.07.2021 with an outlay of Rs.3,03,758 Crore and an estimated Gross Budgetary Support  (GBS)  of  Rs.97,631  Crore  from  the  Central  Government.  Under  this scheme,  the  eligible  DISCOMs  (all  State-owned  Distribution  companies  and State/UT Power Departments excluding private Sector power companies) would be  provided  financial support  for  installation  of  prepaid  smart  meters  for consumers  in  TOTEX  (Total  Expenditure)  mode.  Under  this  scheme,  a  fixed amount of Rs.900 per consumer meter or 15% of the cost per consumer meter worked out for the whole project, whichever is lower, would be funded for 'Other than Special Category States'. However, in case of 'Special Category States', a fixed amount of Rs.1350 per consumer meter or 22.5% of the cost per consumer meter worked out for the whole project, whichever is lower, would be provided.

Further,  to  incentivize  the  States/UTs  for  deployment  of  prepaid Smart Meters by December, 2023, an incentive @ 7.5% of the cost per consumer meter  worked  out  for  the  whole  project  or  Rs.  450  per  consumer  meter, whichever is lower, would be provided for 'Other than Special Category States" whereas the incentive @ 11.25% of the cost per consumer meter worked out for the whole project or Rs.675 per consumer meter, whichever is lower, would be provided  for  'Special  Category  States'.  Remaining  cost  is  to  be  invested  by AMISP (Advance Metering Infrastructure Service Provider) which will be paid on per  meter  per  month  basis  by  distribution  company.  Generally,  improvement  in revenue  has  been  reported  (after  installation  of  pre-paid  smart  meter)  to  be higher than monthly amount to be paid to AMISP.

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