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Power Ministry: Orders given to all govt offices to switch over to prepaid smart meters on priority

By Ruchi Upadhyay 
Updated Date

New Delhi: Electricity Reform: Now preparations are being made to implement the system of Pre-Paid Smart Meter in the whole country. In fact, the Ministry of Power has advised all the central ministries of the government to instruct the organizations under their administrative control to install prepaid smart meters. After the installation of prepaid smart meters, it is expected that the financial condition of the electricity distribution companies will improve, which are still burdened with the outstanding electricity bills.

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As much money as electricity

Prepaid meter works in the same way as prepaid mobile, meaning as much electricity as money. However, prepaid meters are used in many parts of the country. which needs to be recharged. After the installation of prepaid meters in central government offices, it will be implemented across the country. Prepaid smart meters will be installed in the homes of all electricity consumers.

Pre-paid electricity meters will be installed in government departments

This advisory comes after a clarification issued by the Finance Ministry, asking all central ministries and central departments to make advance payments for pre-paid electricity meters without insisting on bank guarantees. Along with this, everyone has also been asked to ensure accounting management. According to the Ministry of Power, Prepaid Smart Meters in all government departments will prove to be instrumental in ensuring the efforts of the government to not only bring the Electricity Distribution Companies (DISCOMS) on the path of financial stability and promote energy efficiency, but also for the states. Will serve as a model for preparing the system.

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Actually, under this scheme, in a phased manner, prepaid smart meters are to be arranged for all electricity consumers except agricultural consumers. Preference will be given to installation of prepaid smart meters in all departments of the Central and State Governments, including urban and rural local bodies and government boards and corporations. Its purpose is to ensure that government departments keep a proper budget for this and pay for electricity services whenever they are used.

Will help in clearing the dues

This will help in clearing the outstanding electricity bills by their respective departments. The Government of India is committed to uninterrupted, reliable and quality power supply to all consumers, which requires an operationally efficient and financially sustainable power sector. DISCOMs are often seen as the most important but weakest link in the power sector. Because at the bottom of the value chain, the impact of their deteriorating financial condition comes upwards.

At present, the bad condition of power distribution companies

Apart from operational problems, distribution companies are also in a bad condition due to huge outstanding electricity bills, late payments and low payments on the departments of the central and state governments. According to the information received from the states, their government departments had electricity arrears of Rs 48,664 crore at the end of 2020-21. The Government has approved the Revised Distribution Area Scheme, Reform Based and Outcome Linked Scheme to improve the operation efficiency and financial condition of the distribution sector.

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