The GMR Smart Electricity Distribution Company secured a Rs 7,593 crore smart meter order for 22 districts in Uttar Pradesh on July 24, 2023, as part of the central government's Revamped Distribution Sector Scheme (RDSS) implementing the smart metering project.
It will install 75.69 lakh prepaid smart meters across 22 districts, including Varanasi, Prayagraj, Agra, Mathura, and Aligarh.
The RDSS program will install 250 million smart prepaid meters nationwide by 2025-26. The smart meters are expected to enable customers to monitor and manage their electricity consumption expenses effectively. It also aims to enhance the operational efficiency of power distribution companies (discoms) through improved billing and revenue collection processes.
Smart Metres In India & Electricity Bills
As of May 2023, India has installed more than 5.5 million smart meters, mainly in postpaid mode. However, under the RDS scheme, the government plans to shift all meters to smart prepaid mode by 2025-26. The prepaid method will improve revenue collection efficiency for discoms, as consumers must pay before consumption, avoiding non-payment and accumulating arrears. The prepaid functionality also empowers consumers to plan their electricity usage according to their needs and resources.
In a statement on March 20, 2023, the Union Power Minister, RK Singh, urged electricity consumers to adopt smart prepaid meters, as they could help reduce power costs by up to 2 to 2.5 per cent. Installing these meters would also lower operational and financial costs for electricity suppliers, as consumers credit their accounts in advance, the minister said.
Further, adopting smart meters will bring about digitization, automation, and greater efficiencies in the electricity distribution system. It will aid in energy accounting, enabling better identification of areas that require attention.
According to a survey by the Council on Energy, Environment, and Water (CEEW) released in March 2023, 50 per cent of surveyed customers reported that the regularity of bills reduced after installing smart meters. The survey covered over 4,500 people across Assam, Bihar, Haryana, Madhya Pradesh, Rajasthan, and Uttar Pradesh, including 1,200 prepaid and 1,500 postpaid metered households. As much as 38 per cent of respondents reported reduced electricity bills. Around 30 per cent of prepaid users recharge more than once a month, with the highest share in UP (38 per cent), the report said. With prepaid bills based on the previous month's usage, customers can control their prepaid bill expenses. However, it still deducts from their budget before actual use.
Other Benefits
Apart from reducing electricity bills, smart meters also offer additional benefits. For smart meter consumers, bill generation occurs once every month, which is a significant improvement for those who receive bills only once every two months in regions like Rajasthan. The bill generation happens remotely and automatically on a fixed date each month, unlike conventional meters, where the date depends on when meter readers visit the premises to take manual readings. This feature will help properly budget a billpayer's monthly expenses and eliminate abrupt cuts from the home budget.
The survey revealed that two-thirds of smart meter consumers find bill payment easier due to the convenience of digital payment modes and smart meter apps. Around 37 per cent of consumers reported that smart meters helped reduce electricity theft in their locality, 38 per cent reported reduced electricity bills, and 41 per cent reported improved quality of power supply.
