Switching on India’s smart electricity future

May 6, 2023

Context:

India has installed more than 5.5 million smart meters and has sanctioned over 100 million. The goal is to replace 250 million conventional electric meters with prepaid smart meters by 2025-26

Smart metering transition in India: Challenges and the way forward

Government support: India is providing a results-linked grant-cum-financing to help power distribution companies (discoms) become financially sound and efficient.
Reaping technology benefits: A recent study by the Council on Energy, Environment and Water (CEEW) found that the majority of smart meter users have already begun to experience some of the technology benefits.

Visible Benefits:
- Improvements in billing regularity.
- Paying bills has become easier.
- Multiple co-benefits such as a greater sense of control over their electricity expenses, a drop in instances of electricity theft, and improved power supply to the locality.
- These findings give confidence that India’s smart metering transition is heading in the right direction.

Challenges:

Half the users were not using the smart meter mobile app, and many were unable to access detailed electricity bills, leaving them doubtful about their bill computation and deductions.
Solving these will help bring a smart-meter revolution in India.

Way Forward:

First, the Ministry of Power should drive a nationwide campaign to educate consumers about smart meter benefits and improve the uptake of smart meter apps.
- The apps should be accessible to users from diverse socio-economic backgrounds and provide actionable tips and information.
Second, discoms must co-own the programme and take the driving seat.
- Discoms must work closely with Advanced Metering Infrastructure Service Providers (AMISPs) to ensure a smooth installation and recharge experience for users, to leverage smart meter data for revenue protection and consumer engagement.
Third, discoms, system integrators, and technology providers should collaborate to devise innovative and scalable data solutions.
- This would require an ecosystem that fosters innovation in analytics, data hosting and sharing platforms, and enables key actors to collaboratively test and scale new solutions.
Fourth, policymakers and regulators must strengthen regulations to empower consumers to unlock new retail markets.