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Strap: Experts say electricity consumers will have to share expenditure of installing meters, question MSEDCL’s claims on reduction in losses, better supply Commercial Ev Charging Station
Power experts have raised questions over Maharashtra State Electricity Distribution Company’s (MSEDCL) plan to install nearly 2.5 crore smart prepaid electricity meters at an estimated cost of ₹ 26,921 crore. They warn that since the project cost is too high, the expenditure will be recovered from consumers in the form of a tariff hike.
“The Uttar Pradesh government in February scrapped the tender that put the cost of each smart prepaid meter at ₹ 10,000. Then why did the Maharashtra government award tenders to procure each meter for ₹ 12,000?” asked power expert Pratap Hogade.
He also said if a smart postpaid meter costs around ₹ 4,000 then why is it needed three times more money just to add some software for a prepaid mechanism. “MSEDCL’s claim that the meter cost will not have any impact on tariff is an eyewash. Over the years, it will definitely recover the cost from the consumers.”
Another power expert, Ashok Pendse, agreed that MSEDCL will pass on some of the expenditure on the infrastructure to the consumers. “Besides, the utility’s claims on reduction in losses, a higher recovery rate and improved supply need to be quantified.”
Krushna Bhoyar, general secretary of an electricity workers’ federation, alleged that this project is part of a privatisation bid in the distribution sector.
“This project has 60% assistance from the Central government because they want to privatise the discoms. Thousands of employees involved in meter reading and related processes will lose their jobs. What’s about the crores of current meters which are in good condition?” Bhoyar said.
Unions of electricity workers pointed out that of the four companies that won bids only M/s Genus manufactures meters. That means the other three companies will buy meters from someone and will work as suppliers, they said.
When contacted, Lokesh Chandra, MD of MSEDCL, said they will not charge any amount for smart prepaid meters now, but part of the expenditure will be recovered over the years and that will have a negligible effect on tariff.
“Smart meters will help address consumers’ grievances over billing as they will get round-the-clock data about consumption through a mobile app. This will also improve collection efficiency and help in reducing commercial losses,” he said and added that an increase in revenue will control the tariff hike.
State-owned MSEDCL or Mahavitaran caters to around 2.8 crore consumers in Mumbai, Thane, Navi Mumbai, Kalyan, Vasai-Virar and the rest of Maharashtra.
Smart meters are linked to a network and monitored remotely. Electricity distribution company officials need not visit to take a reading of consumption and can also disconnect supply remotely in case of non-payment of bills. The utility recently sent a letter to its 15 zonal offices that the total expenditure for the smart meter plan stands at ₹ 26,921 crore for installing 2,24,61,346 meters.
Electricity Meter The project is part of the Central government’s Revamped Distribution Sector Scheme with an outlay of ₹ 3,03,758 crore. Under this scheme, the Centre will provide gross budgetary support of ₹ 97,631 crore till 2025 to install 25 crore smart prepaid meters all over the country.