THE MINISTER OF POWER AND NEW & RENEWABLE ENERGY
(SHRI R. K. SINGH)
(a) : As on date, 25.23 lakh Smart Meters (apprx) have been installed in various States under various schemes / initiatives and about 81 lakh smart meters are at different stages of implementation. The status of Smart meter installation during the years 2019-20 and 2020-21 is given at Annexure-I.
(b) : The Smart Meters enable improvement in billing and collection efficiencies thereby reducing the AT&C losses of DISCOMs facilitating better financial performance. The NSGM has undertaken assessment of the smart meters installed under their Smart Grid pilot projects and substantial reduction in AT&C loss (up to 15%) was noted. Similarly MPPKVVCL (Indore) has reported payback within 2½ years for the project. As per information received from the REC, the DISCOMs have reported an increase in earning in the range of Rs.200-500 per consumer meter per month wherever Smart Meters have been installed.
(c) The benefits of smart prepaid metering are as under:
i. The working capital requirement will reduce.
ii. DISCOMs will be able to purchase comparatively cheaper electricity from power exchange which due to financial constraint they are not able to purchase.
iii. The burden of late payment surcharge will also become zero. The late payment surcharge is quite substantial in some of the States;
iv. Based on the analysis of consumer-wise data, DISCOMs will be able to improve the infrastructure and provide 24X7 reliable power to all its consumers;
v. DISCOMs will be able to pay in advance to GENCOS and Transmission companies, thereby taking a rebate of around 1.5% to 2% on the power purchase cost;
vi. Once generating companies and transmission companies get payment in time or in advance, their working capital requirement will also reduce and to this extent, the tariff will also come down.
vii. Cost saving as there would not be any requirement of serving a physical bill: - This will do away with irregular billing, particularly, in the rural area where the meters are not read regularly and bills are served either quarterly or half-yearly or even sometimes annually. This has led to cumulative dues which the rural consumers find it difficult to pay timely to the DISCOMs and the amount is compounded with late payment surcharge. With pre-payment meters, consumers can pay as per the convenience and in smaller denominations as per his payment capacity.
(d) : Ministry of Power vide letter dated 26.02.2021 (Annexure-II) has requested all the States to prepare a road map for shifting over to smart pre-payment meters/ pre-payment meters.
The Electricity (Rights of Consumers) Rules, 2020 was notified on 31.12.2020 and as per this Rule, no connection shall be given without a meter and such meter shall be the Smart pre-payment meter or pre-payment meter. The relevant provision in the above mentioned Rule is as under:-
“No connection shall be given without a meter and such meter shall be the smart pre-payment meter or pre-payment meter. Any exception to the smart meter or pre-payment meter shall have to be duly approved by the Commission. The Commission, while doing so, shall record proper justification for allowing the deviation from installation of the smart pre-payment meter or pre-payment meter.”
Respective Power Distribution Utilities have been advised to undertake necessary measures to create awareness about smart meters among the general public.
(e) : Privacy related and cyber security related provisions have been adequately incorporated in the Standard Bidding Document (SBD). As regards data privacy, the SBD provides that Advanced Metering Infrastructure Service Provider ( AMISP) should ensure that the system is compliant with the applicable provisions of the “Reasonable security practices and procedures and sensitive personal data or information Rules, 2011 (IT Act)”. AMISP shall also be committed to work with Utility for compliance to Personal Data Protection requirements. Provision for putting in place data privacy framework has also been made which inter alia includes, amongst several other provisions, those related to custodian of Smart meter data, submission of “Privacy by Design” document to the utility by AMISP, laying down of data sharing protocol and also for conduct of 3rd party data privacy audit by AMISP.
The implementing agencies are obligated to undertake strict cyber security protocols, User Acceptance Testing, STQC audits etc.
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