Smart power meter project loses steam

The installation of smart meters across the state has almost come to a halt, especially in theft-prone areas, as it is turning into a white elephant for the Punjab State Power Corporation Limited (PSPCL). The total cost of the project, including financing, will exceed Rs 11,000 crore with a subsidy of Rs 790 crore only, thus ultimately burdening the consumers who will have to pay the price.

According to information gathered by The Tribune, the PSPCL has installed 11.40 lakh smart meters, including 9.56 lakh single-phase and 1.82 lakh three-phase meters. PSPCL engineers claim that out of these, 15 per cent are not working due to various reasons, which means either the consumer is billed on average or no billing is done by a third party. The expenditure of installing 12 lakh smart meters is to be divided among 85 lakh consumers as per the recent tariff order.

The PSPCL stands to lose the presently installed meters valued at Rs 680 crore. “This is likely to increase the cost of power for the people of Punjab, which necessitates careful consideration,” said a senior PSPCL engineer.

Senior officials said smart meters will end the need to take readings manually, besides ensuring delivery of accurate bills and enabling prepayment customers to conveniently track their usage and top-up credit without leaving home. However, all this does not justify the substantial cost difference.

“The project of installing smart meters should have been taken as a pilot project in one city. It is essential that the cost-benefit analysis and other critical aspects of the project are thoroughly discussed with all relevant stakeholders before proceeding with such a significant investment,” said All India Power Engineers Federation spokesperson VK Gupta.

“The high cost is likely to increase the cost of power for the people of Punjab, which necessitates careful consideration. In Punjab, where 90 per cent domestic consumers do not get any power bill, the smart meter project hardly serves any purpose,” he said.

Another PSPCL official, attached with the finances, said there was no pay back for smart meters, only crores of additional loans to be added to the kitty. “In case of any damage to the meter, theft or theft of electricity—the responsibility will be that of the PSPCL. The consumer will have to pay Rs 8,500 for a damaged meter against present Rs 1,500,” added the official.

The PSEB Engineers Association says, “Smart meter technology was never opposed, but its implementation is not okay.”

A senior PSPCL official, however, said, “Minus the cost part, this is a future technology. We need to work out the costs.”

Rs 11,000-cr expenditure

• The total cost of the project, including financing, will exceed Rs 11,000 crore with a subsidy of only Rs 790 crore, thus ultimately burdening the consumers
• The expenditure of installing 12 lakh smart meters will be divided among 85 lakh consumers as per the recent tariff order
• Moreover, with around 90 per cent domestic consumers in the state not getting any power bill, the project will hardly serve any purpose, sources say