Lok Sabha Question No. 3591 (UNSTARRED), answered on 2023-08-10
Subject: Smart Meters under RDSS
Ministry: POWER
Asked by: Suresh Kodikunnil

## GOVERNMENT OF INDIA MINISTRY OF POWER LOK SABHA UNSTARRED QUESTION NO.3591

## ANSWERED ON 10.08.2023

## SMART METERS UNDER RDSS

## 3591. SHRI KODIKUNNIL SURESH:

Will the Minister of POWER be pleased to state:

- (a) whether  the  Government  has  launched  the  Revamped  Distribution  Sector Scheme (RDSS) project in 2021 to ensure mass adoption of prepaid smart meters;
- (b) if so, whether Kerala State is yet to complete the implementation of smart meters in the State;
- (c) whether the Government is aware of the report that such smart meters are likely  to  be  replaced  after  every  five  to  eight  years  and  would  burden  the consumers; and
- (d) if so, whether the Government proposes to provide subsidies to consumers for bearing the expenses in this regard and 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) : Government  of  India  has  launched  Revamped  Distribution  Sector Scheme  (RDSS)  in  July,  2021  with  the  objective  of  improving  the  quality  and reliability  of  power  supply  to  consumers  through  a  financially  sustainable  and operationally  efficient  distribution  Sector.  Scheme  aims  to  reduce  the  AT&C losses to pan-India levels of 12-15% and ACS-ARR gap to zero by 2024-25. The Scheme has an outlay of Rs. 3, 03,758 crore with an estimated gross budgetary support of Rs. 97,631crore from the Government of India.  The scheme envisages installation of 25 crore Prepaid Smart metering solution at consumer, Distribution Transformer (DT) and feeder level including integration of existing infrastructure. So far, 21 crore smart meters have been sanctioned to various States/ DISCOMs under RDSS.

The details of smart metering works sanctioned under RDSS for the State/ DISCOM of Kerala are as under:

| Item                       | Number     |
|----------------------------|------------|
| Smart Consumer Meters      | 13,289,361 |
| Communicable DT Meters     | 87,615     |
| Communicable Feeder Meters | 6,025      |

The  DISCOM  is  in  the  process  of  tendering  and  award  of  the sanctioned works and the installation of smart meters in the State of Kerala is yet to commence.

Data  gathered  as  part  of  the  two-way  communication  in  a  smart metering solution will help utilities to improve their load forecasting, which will help  them  in  optimizing  their  power  procurement  thereby  reducing  the  cost  of power supply. The direct impact of this feature will be on reducing the ACS-ARR gap and AT&C losses of the DISCOM which will ultimately benefit end consumer. Further,  a  smart  meter  captures  consumer  profile,  consumption  pattern  and provides real-time information to consumers to plan their usage of electricity.

(c) & (d) : No such report  is  available  regarding  replacement  of  smart  meters every  five  to  eight  years.  However,  roll-out  of  smart  meters  under  RDSS  is envisaged through PPP (Public Private Partnership) on TOTEX mode which makes this component self-financing and the DISCOM will not have to pay upfront for the capital expenditure on the same. The AMISP (Advanced Metering Infrastructure Service Provider) will be responsible for supplying, maintaining and operating the metering  infrastructure  post  installation.  This  approach  provides  end-to-end responsibility of AMISP for delivery of services during the entire life cycle of the project (7-10 years). Under TOTEX mode, it is expected that the DISCOM will be able  to  finance  per  month  cost  with  the  enhanced  revenue  as  a  result  of improvement in billing and collection due to prepaid metering.

Further, under RDSS, financial assistance for Smart Metering works is being provided as below:

- I. Grant  of  Rs  900  or  15%  of  the  cost  per  consumer  meter  (whichever  is lower), for 'Other than Special Category' States and a grant of Rs 1350 or 22.5% of the cost per consumer (whichever is lower) for 'Special Category' States.
- II. Additional  incentive  of  7.5%  of  the  cost  per  consumer  meter  or  Rs.  450 (whichever is lower) for Other than Special Category States and 11.25% or Rs.  675  per  consumer  meter  (whichever  is  lower)  for  'Special  Category' States  to  incentivize  the  States/UTs  to  fast-track  installation  of  prepaid Smart Meters by December 2023.
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