India’s power sector has undergone significant transformation in recent years, with the introduction of prepaid smart meters emerging as a game-changing technology. The Indian government’s ambitious Smart Meter National Programme (SMNP) is set to transform the nation’s energy landscape by promoting smart metering technology. With an aim to replace 25 crore conventional meters with smart meters across the country, this initiative promises numerous benefits for both consumers and utility companies alike, notes Winston S. K. Adams.
What is a smart meter?
A smart meter is an advanced metering device used for measuring and recording electricity, water, or gas consumption at homes, businesses, and other utility service locations. Unlike traditional analog meters, smart meters are equipped with digital technology and communication capabilities that enable them to provide a wide range of benefits to both utility providers and consumers. It collects and transmits real-time data about energy consumption. This technology allows consumers to track their energy usage, save money through efficient energy management, and even remotely control appliances. For utility companies, smart meters enable improved grid efficiency, enhanced customer service, and valuable data insights to optimize operations.
Smart meters are helpful for consumers and discoms. For consumers, they are able to get instant data on their energy usage, allow them to identify areas where they can save money and reduce wastage, able to control appliances remotely and get accurate meter reading while, discoms are able to identify problems / issues with the grid, reducing downtime and minimizing outages and provide timely alerts to customers about high energy usage or grid-related problems, delivering better customer services. At the same time, discoms can collect wealth of data about energy consumption, enabling them to improve grid efficiency, develop innovative products and services, reduce Aggregate Technical & Commercial (AT&C) losses, and improve operation efficiency.
Revamped Distribution Sector Scheme (RDSS)
The Indian government has launched the RDSS with a budgetary outlay of Rs.3,03,758 crore, aiming to reduce AT&C losses to pan-India levels of 12-15 per cent and Average Cost of Supply (ACS)-Average Revenue Realised (ARR) gap to zero by 2024-25 across the nation.
As part of this scheme, 25 crore smart meters will be installed through a competitive bidding process. The scheme has two major components:
- Part A: Financial support for prepaid smart metering & system metering and upgradation of the distribution infrastructure,
- Part B: Training & capacity building and other enabling & supporting activities.
Financial assistance to discoms is provided for upgrade of the distribution infrastructure and for prepaid smart consumer metering & system metering based on meeting pre-qualifying criteria and achieving basic minimum benchmark in reforms.
Advanced Metering Infrastructure Service Providers (AMISP) will be selected to oversee the project, and their performance will be linked to Service Level Agreements (SLA) to ensure end-to-end responsibility for project delivery. Currently, there is intense competition in the Advanced Metering Infrastructure Service Providers (AMIS) space and close to forty-three companies have already enrolled with RECL Ltd and participating in the tenders invited by various discoms.
As per recent data, discoms have awarded contracts involving 4.38 crore smart meters to close to 20 companies —Anvil Cables, Apraava Energy, BCITS, EESL, IPCL, Genus, GMR Infra, HPL, HPMS, India Power Corporation, IntelliSmart, Monte Carlo, Secure Meters, Adani Energy Solutions Ltd, Shirdi Sai, Tata Power and Techno Electric & Engineering Co. Ltd, to name a few.
What is a prepaid smart meter?
Prepaid smart meters are the new generation of energy meters installed in households and businesses that are used to record electricity consumption in real time. As they are connected to the internet, users and utilities can easily track and monitor electricity usage and get accurate bills. Their remote meter reading capabilities eliminate the need for manual inspection, making them highly efficient and convenient.
The prepaid function in a smart meter operates similarly to a prepaid mobile. You need to recharge your meter in advance to use electricity.
Benefits to customers
Improved budgeting: Prepaid smart meters allow customers to see their energy usage in real time, which can help them to budget more effectively. This can lead to lower energy bills, as customers are less likely to overspend.
Reduced debt: Prepaid smart meters can help customers to reduce their debt, as they can only use the energy for which they have paid. This can be a major benefit for low-income households and those who are struggling to pay their bills
More control on energy usage: Prepaid smart meters give customers more control over their energy usage. They can top up their meter whenever they need to, and they can also set up alerts to remind them when their credit is running low. This can help customers to be more mindful of their energy usage and to amend their habits to save money. The recharge process is easy, like mobile phones
Alerts to customer on recharge: In the case of low or no balance, customer receives 2 or 3 alerts through the meter and/or SMS before supply is disconnected. The prepaid function helps in avoiding unexpected bills and allows you to budget your usage.
Remote recharge: Customers can recharge their prepaid meters online or through designated recharge points
Consumer satisfaction: Customers appreciate the transparency and control over their electricity consumption, leading to higher satisfaction levels.
Prepaid smart meters in India have emerged as a game changer for the power sector, addressing issues related to revenue collection, electricity theft, and operational efficiency.
Benefits to discoms
Reduced theft: Prepaid smart meters can help to reduce electricity theft, as customers can only use the energy for which they have paid as unauthorized connections can be detected and disconnected remotely . This can save discoms a significant amount of money.
Improved efficiency: Prepaid smart meters can help discoms to improve the efficiency of their networks. By being able to monitor energy usage in real time, discoms can identify and fix problems more quickly. This can lead to fewer outages and a more reliable supply of electricity.
Increased customer satisfaction: Prepaid smart meters can help to increase customer satisfaction. By giving customers more control over their energy usage and by reducing debt, discoms can improve the overall customer experience.
Operation efficiency: The existing manual system to collect revenue for power usage is not only inefficient, but it also causes huge losses to power distribution companies. As consumers can recharge their prepaid meters online or through designated recharge points, this eliminates the need for physical meter reading and manual bill payments, reducing administrative costs for DISCOMs. By being highly accurate, prepaid smart meters would significantly reduce these losses and help utilities in improving the power supply.
Prepaid Smart Meter Development Status
The adoption of prepaid smart meters in India has gained momentum due to various government initiatives and policies, including the Smart Meter National Programme. As per Power Ministry of India, currently 44,23,867 smart meters are installed out of which 9,02,652 are of the prepaid type.
In addition to the benefits mentioned above, prepaid smart meters can also help to:
Reduce carbon emissions: By making it easier for customers to track their energy usage and amend their habits, prepaid smart meters can help to reduce carbon emissions.
Improve grid resilience: By giving discoms more visibility into energy usage, prepaid smart meters can help to improve the resilience of the grid. This is important in areas that are prone to power outages.
Enable new services: Prepaid smart meters can enable new services, such as demand-side management and dynamic pricing. These services can help to reduce peak demand and improve the efficiency of the energy system.
Conclusion
Overall, prepaid smart meters in India have emerged as a game changer for the power sector, addressing issues related to revenue collection, electricity theft, and operational efficiency. It offers several benefits for both customers and discoms. By improving budgeting, reducing debt, giving customers more control, and reducing theft, prepaid smart meters can help to save money and improve efficiencies of the energy system. As their deployment continues to expand, they are expected to play a crucial role in ensuring a sustainable and financially viable power distribution system in the country. The combination of technology, government support, and consumer empowerment makes prepaid smart meters a transformative force in India’s quest for a more efficient and reliable power sector.
The author, Winston S. K. Adams, is Vice President – Corporate Affairs, MarComm & Partner Relations, Fluentgrid Ltd.
