30 Crore Energy Meters Will Be Replaced By Prepaid Smart Meters Costing Rs 2000 Each: Find Out Why
As of now, there are around 30 crore energy meters, installed across Indian households, pan-country.
Very soon, everyone of them will be replaced by prepaid smart meters, whose cost is Rs 2000 per piece.
Why is this happening?
Every Energy Meter To Be Replaced By Prepaid Smart Meters
In the next three years, Govt aims to replace every energy meter with smart prepaid meters. This will be a massive exercise, as close to 30 crore households will receive these smart energy meters.
This is part of the Rs 2.86 trillion worth Atal Distribution System Improvement Yojana (Aditya), which is India’s biggest energy reform movement ever unleashed.
FM Nirmala Sitharaman made this announcement during Union Budget 2020, when she said, “I urge all the states and Union territories to replace conventional energy meters by prepaid smart meters in the next three years.”
Why Smart Energy Meters?
Each prepaid energy smart meter will cost approximately Rs 2000, and there will be an open tender to chose the company which will provide such smart energy meters.
This would be a gamechanging move, as with smart energy meters, consumers will be in power to choose their energy provider, and the tariff.
The Minister said, “…Also, this would give consumers the freedom to choose the supplier and rate as per their requirements,”
With smart meters, Govt aims to reduce energy losses.
As of now, India’s average aggregate technical and commercial (AT&C) losses are at 21.4%. This has pushed the discoms to amount payable upto Rs 74,000 crore to the ower generating companies.
Advantages Of Smart Meters
With smart meters, human intervention is minimized, billing and collection can be automated, to ensure that there are no revenue leaks for the discoms, and consumers are not able to cut their bills.
Almost real-time information collection of energy usage by households, via two-way communucation network, usage of advanced software and a control central equipment.
This move will be part of the energy distribution reform mission, tentatively called Atal Distribution System Improvement Yojana (Aditya)
Privatisation of energy distribution can be enhanced, and more transparency can be expected now.
We will keep you updated, as more details come in.