100% of electricity consumers to pay smart meter costs installed by around 2%

Electricity consumers of Karnataka will have to bear the cost of smart meters irrespective of whether they have installed one or not, from the next financial year. While the cost of the meter will be collected from consumers who install it, the technological and maintenance cost of all meters, which comes to around ₹75 per meter a month, will be socialised and passed on to all the consumers. 

Electricity consumers of Karnataka will have to bear the cost of smart meters irrespective of whether they have installed one or not, from the next financial year. While the cost of the meter will be collected from consumers who install it, the technological and maintenance cost of all meters, which comes to around ₹75 per meter a month, will be socialised and passed on to all the consumers. 

After opting out of the Centre’s Revamped Distribution Sector Scheme (RDSS), the State is going ahead with its own strategy for installing smart meters as per the Central government norms. The Karnataka Electricity Regulatory Commission (KERC) has directed electricity supply companies (Escoms) to provide smart meters only for temporary connections and new connections as of now.

According to officials of the Energy Department, the per-meter-per-month cost of smart meters will be ₹116, out of which ₹75 will be used for the services of Advanced Metering Infrastructure Service Provider, which manages and maintains the smart meter infrastructure, while the remaining ₹41 will be the cost of meters.

However, with consumers buying the smart meters first by paying the fixed amount of ₹4,998 per meter, the monthly charges will come up to ₹75 across a period of 10 years.  

“Among one crore consumers in Bescom jurisdiction, around 3 lakh (around 2%) are estimated to get smart meters. The monthly cost of ₹75 will not immediately be reflected in the bills of the smart meter consumers. As per KERC directions, the amount will be absorbed by the Escom and it will be socialised and spread over all the consumers of Bescom,” explained Gaurav Gupta, Additional Chief Secretary, Energy Department, speaking at a press conference on Monday. 

However, power utilities are considering appealing to the KERC to reconsider these norms in order to not burden consumers who do not get smart meters.

“Even after socialisation, the amount per unit will be only around 0.1 paise or 0.2 paise,” a senior official from Energy Department said, defending the move.