Free Power, Smart Meters to Continue, Claims State Govt

HYDERABAD: Irrespective of hue and cry from the opposition, the state government is maintaining that the 200 unit free power is a state-level subsidy and it is prerogative of the government to continue welfare scheme, including free power to farmers and firmly stating that both the schemes will continue irrespective of installing smart meters and dumped their version of mixing up both and create unnecessary confusion.

If discoms operate with heavy losses, the burden ultimately falls on consumers through higher tariffs and poor service. Discoms need to be financially healthy to ensure round the clock quality power supply and hence the state government maintains that the smart meters to capture accurate data on power consumption, ensure accurate billing, and transparency, which are essential reforms in the power sector.

On the blame game by BRS leaders over installing smart meters, revenue minister Ponguleti Srinivas Reddy recently made it clear that the UDAY agreement was signed during the BRS government with the Union ministry of power on January 4, 2017. The discoms have executed a tripartite agreement when the BRS was in power and Ajay Mishra was the energy secretary.

The officials in the energy sector stated that even metering targets for distribution transformers and feeder metering were set as per 2017 agreement. The smart meter timelines were also laid down in that agreement with consumers using more than 500 units per month were to be covered by smart meters by December 31, 2018 and those using more than 200 units by December 31, 2019. Though the timelines have not been maintained, they were agreed during the BRS government and not new conditions imposed by the present government, claims the sources.

Even the Revamped Distribution Sector Scheme (RDSS), introduced in 2021, which is an upgraded version of UDAY Scheme, was adopted by almost all states except Karnataka and Tamil Nadu.

The scheme’s deadline has recently ended and the Centre has now decided to extend it by another two years. The officials state that the main objectives of the schemes were to reduce discom liabilities, narrow the gap between average cost of supply (ACS) and average revenue realised (ARR) and control technical and commercial losses. The aim was not to burden the people, but to know exactly where power is being supplied, where losses are occurring and where theft is taking place.

According to official sources, the government at first wants to install smart meters for government departments, commercial and industrial consumers, and high consumption residential users. The idea is to track how much power these users are drawing, whether there is any pilferage or high loss areas and to improve billing accuracy.

The discoms in the state are under financial strain, with rising power purchase costs, issues in treasury clearing, billing problems, recovery gaps and high technical and commercial losses.

In such a situation, the government sources claim that using the central funds provided under RDSS is in the state’s own interest. By joining RDSS, the state can utilise central assistance in a 60:40 ratio (Centre: state) and modernise the distribution network.

The funds are intended to strengthen weak feeders, replace faulty infrastructure and upgrade areas with high losses. In the long run, this will ensure better quality power supply to the people.

Giving clarity that the consumers have to bear the burden of installation of smart meters, the officials stated that the expenditure is borne entirely by the Centre and the state government and no consumer is being asked to contribute even a single rupee. The primary aim is not to burden people, but to get clear visibility over where power is being used, where losses are high, and how to plug them.

Main goals of RDSS

1. Reduce aggregate technical and commercial (AT&C) losses in electricity distribution to 12–15% nationwide.

2. Narrow or eliminate the gap between average cost of supply (ACS) and average revenue realised (ARR).

3. Introduce pre paid smart meters across the country. Under the scheme, the Centre guarantees up to about 60% of the funding to discoms in the form of central assistance.