8 mn Smart Power Meters Installed

Chennai: Around 8 million smart meters have been installed to replace conventional power meters as of December.

The government launched the Revamped Distribution Sector Scheme (RDSS) in July 2021 to improve the operating efficiency of state distribution utilities (discoms) by bringing down the aggregate technical and commercial (AT&C) losses to 12-15 per cent by 2025 and reducing the gap between the cost of supply and tariff to zero. The replacement of conventional meters with smart meters remains a key initiative of this scheme, with a target to replace 250 million conventional meters at the all-India level.

Of the 222.3 million meters sanctioned by the government as of December 2023, 98.7 million meters have been awarded. However, the progress in installations remains low, with only 8 million smart meters installed as of December 2023.

ICRA expects the pace of installations to witness a significant jump over the next two years, supported by the progress in tendering and the Government’s focus on improving discom finances. The move is expected to improve the billing and collection efficiency of the discoms. While choosing customers for replacing the meters, the discoms must be mindful of their consumption potential to achieve net positive savings, post the replacement with smart meters.

The RDSS scheme adopted the design, build, finance, own, operate, and transfer (DBFOOT) model for the installation of smart meters. Under this model, advanced metering infrastructure service providers (AMISPs) will be contracted to supply, finance, install, and operate the meters along with the associated communication and IT infrastructure. This will enable the discoms to set up smart meters without the burden of upfront investment and take over these assets at no cost at the end of the contract tenure.