Lok Sabha Question No. 2284 (UNSTARRED), answered on 2026-02-12
Subject: Guidelines issued to improve Consumer Service under RDSS
Ministry: POWER
Asked by: Shri Bidyut Baran Mahato

## GOVERNMENT OF INDIA

## MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.2284 ANSWERED ON 12.02.2026

## GUIDELINES ISSUED TO IMPROVE CONSUMER SERVICE UNDER RDSS

†2284. SHRI BIDYUT BARAN MAHATO:

Will the Minister of POWER be pleased to state:

(a) the  national-level  guidelines  issued  by  the  Government  to  improve  consumer service, energy efficiency and financial discipline through phased installation of smart meters across the country under the Revamped Distribution Sector Scheme (RDSS); and

(b) the mechanisms put in place for monitoring and grievance redressal to ensure consumer convenience and transparency at the central level?

## A N S W E R

THE MINISTER OF STATE IN THE MINISTRY OF POWER

(SHRI SHRIPAD NAIK)

(a) : Government of India (GoI) launched the 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.

Fund  release  under  the  scheme  for  distribution  infrastructure  is  linked  to performance of the distribution utilities against various parameters including financial parameters like AT&C losses and Gap between the Average Cost of Supply and Average Revenue Realised. This has helped improve financial discipline in the distribution utility.

Installation of pre-paid smart meters for consumers and system smart meters is also  an  important  intervention  under  RDSS  which  provides  enhanced  services  to consumers,  improved  financial  discipline  for  DISCOMs  through  increased  collection efficiency and better energy accounting of the distribution system.

The  installation  of  pre-paid  smart  meters  for  consumer  categories  is  being prioritised for  Government  establishments,  commercial,  industrial  and high-load consumers and subsequently for other consumers based on demonstration of benefits.

Under the scheme, smart metering works for 19.79 crore consumers, 2.11 lakh feeders and 52.53 lakh Distribution Transformers (DTs), totaling 20.33 Cr smart meters, have  been  sanctioned  based  on  the  proposal  submitted  by  the  States/  distribution utilities and 4.19 crore smart meters have been installed. Smart meters have also been installed under other schemes including States' own schemes. In total, 5.59 crore smart meters have been installed across the country under various schemes.

To improve consumer experience and confidence for smart metering, the Ministry has issued various advisories and Standard Operating Procedures (SOPs) which include: i. Incentivising consumers for prepaid meter installation through rebates in bill; ii. No penalty on consumer based on maximum demand recorded by smart meter; iii. Mechanism for recovery of past arrears in easy installments; iv. Installation of check meters for enhancing confidence in accuracy of smart meters. The following benefits have been envisaged for consumers: i. Accurate billing based on actual consumption, eliminating error and improving transparency. ii. Mobile  apps  with  consumer-specific  dashboards  providing  data  to  optimize consumption and reduce expenses. iii. Enablement of Time-of-Day consumption empowering consumers to shift loads to save expenses. iv. Convenience of smart meter recharge with small recharges. v. Facilitate net-metering for roof-top solar installation. The smart meters also help distribution utility in providing benefits like automatic energy accounting, improved load forecasting, use of data analytics for demand side management and facilitate an enabling ecosystem for energy transition. These benefits eventually get passed on to the consumers in the form of better services and lower costs. (b): The works executed under RDSS are being monitored at the central level, through the Nodal Agencies namely Power Finance Corporation Ltd and REC Ltd, and an Inter Ministerial Monitoring Committee has been constituted at the Ministry level to sanction the projects and monitor their progress. At State level, Distribution Reforms Committee (DRC),  chaired  by  Chief  Secretary  of  the  respective  State,  oversee  and  monitor  the implementation the scheme. Further, Ministry of Power has issued the Electricity (Rights of Consumers) Rules, 2020 to strengthen the Consumer Grievance Redressal System and enhance consumer services. As per these rules, Consumer Grievance Redressal Forums (CGRFs) have been established at different levels in the distribution utility. If a consumer is dissatisfied with the resolution provided by the utility, they can approach the CGRF and further the Ombudsman, for resolution.

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