Lok Sabha Question No. 1425 (UNSTARRED), answered on 2022-02-10
Subject: Installation of Prepaid Electric Meters
Ministry: POWER
Asked by: Bheemrao Baswanthrao Patil

## GOVERNMENT OF INDIA MINISTRY OF POWER LOK SABHA UNSTARRED QUESTION NO.1425

## ANSWERED ON 10.02.2022

## INSTALLATION OF PREPAID ELECTRIC METERS

1425.  SHRI B.B. PATIL:

Will the Minister of POWER be pleased to state:

- (a) whether  the  Government  proposes  to  install  prepaid  electric  meters  for  all domestic consumers;
- (b) if so, the details thereof;
- (c) whether  DISCOMs  are  suffering  technical  and  commercial  losses  due  to  the present system of metering;
- (d) if so, the details thereof;
- (e) whether  the  Government  also  proposes  budgetary  support  for  installation  of smart meters; and
- (f) if so, the details thereof?

## A N S W E R

THE MINISTER OF POWER AND NEW & RENEWABLE ENERGY

(SHRI R.K. SINGH)

(a) & (b) : Yes,  Sir.  Smart  meters  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  metering  under  National Smart Grid Mission (NSGM) and Integrated Power Development Scheme (IPDS). EESL is also implementing smart metering projects being launched by the DISCOMs at their own independent initiative in the States of Uttar Pradesh, Haryana, Bihar, Rajasthan, A&N Islands, Delhi etc. on OPEX basis wherein EESL is making the initial capital expenditure and DISCOMs are paying back to EESL on monthly rental basis.  Till date, approximately 37.33  lakh  smart  meters  have  been  reported  to  have  been  installed  in  various  States under the aforesaid schemes of Government of India and the aforesaid projects of the DISCOMs.

………..2.

Further, Government of India has launched 'Revamped Distribution Sector Scheme (RDSS) on 20 th  July, 2021 under which deployment of ~25 crores smart prepaid meters for all domestic consumers have been envisaged till March, 2025.

(c) & (d) : There are several reasons for Aggregate Technical & Commercial (AT&C) losses,  which  also  include  metering  related  problems.  Prepaid  system  of  metering minimises  inefficiencies  in  collection,  while  the  smart  feature  in  the  prepaid  smart metering  allows  a  near  real  time  identification  of  loss  pockets,  while  also  giving consumer  the  freedom  to  plan  their  electricity  usage  as  per  their  own  needs  and resources. This helps in reduction of AT&C losses. This also addresses the problems of consumers regarding wrong billing, getting reconnected after disconnection due to nonpayment of  bills  and  alleged  unauthorised  use  of  electricity  in  case  of  only  on  paper disconnection by field staff.

(e) & (f) : Government of India has been providing financial assistance under various schemes (viz. IPDS, NSGM etc.).  RDSS envisages smart metering on  the OPEX mode and provides financial support to DISCOMs opting for prepaid smart metering. Under the scheme, in 'other than Special Category States', 15% (22.5% in case of Special Category States) of the cost per meter worked out over the whole  project  period,  subject  to  a  maximum  of  Rs.900/-(Rs.1350/-  in  case  of  Special Category States) per meter in case of consumer meters, will be funded.

States/UTs would be incentivised 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" for prepaid Smart Meters installed within the targeted  timeline  of  first  phase  mission  i.e.  by  December,  2023.  The  incentive  for Special Category States would be @ 11.25 % of the cost per consumer meter worked out for the whole project or Rs. 675 per consumer meter, whichever is lower.

For  the  purpose  of  execution  of  this  scheme,  all  North  Eastern  States including Sikkim and States of Himachal Pradesh & Uttarakhand and Union Territories of  Jammu & Kashmir, Ladakh, Andaman & Nicobar Islands, and Lakshadweep will be treated as Special Category States/UTs.

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