Annual benefit of ₹252.96 crore expected from smart meter roll-out, says DPR

Prepaid smart metering is planned under the national-level Revamped Distribution Sector Scheme

The Kerala State Electricity Board (KSEB) anticipates annual benefits to the tune of ₹252.96 crore from the Phase-1 roll-out of prepaid smart meters in the State’s power sector, according to a detailed project report (DPR) handed over to the Kerala State Electricity Regulatory Commission (KSERC).

Savings are expected from the reduction in technical and commercial losses and general improvement in operational efficiency, the DPR notes. Prepaid smart metering is also expected to bring in a steady revenue of at least ₹150 crore annually for the KSEB from government consumers, who are among the “major defaulters” when it comes to paying their electricity bills on time.

Prepaid smart metering is planned under the national-level Revamped Distribution Sector Scheme (RDSS). The KSEB handed over the DPR on the meter roll-out to the KSERC ahead of a hearing planned on the KSEB’s capital investment plan for the power distribution sector on Tuesday.

RDSS recommends the total expenditure (TOTEX) model for smart meter roll-out, but this proposal had run into controversy in Kerala with power sector unions alleging that it would pave the way for private players in electricity distribution. Subsequently, on the directions of the State government, the KSEB drafted an alternative proposal where 3 lakh meters would be installed in Phase 1 at a cost of ₹277 crore.

The system meters of the KSEB, high-tension electricity consumers and government consumers in this phase. “Prepaid smart metering for government offices is a pre-qualification criterion under RDSS and BEE (Bureau of Energy Efficiency) regulations. Also, government consumers form one of the major defaulters of KSEB. The annual due from various government consumers comes to around ₹400 crore. So if pre-paid smart meters are installed in these offices we can at least expect a revenue return increase of ₹150 crore annually,” the DPR notes.

As per the cost benefit analysis that is part of the DPR, smart metering is expected to cut down aggregate technical and commercial (AT&C) losses and allow the power utility to plan the distribution infrastructure better. In 2022-23, the KSEB’s AT&C losses stood at 7.55%. If the loss can be slashed “even by 0.5%, there will be an annual saving of 136 million units (mu),” the DPR notes.

Published - November 18, 2024 06:37 pm IST