Do not link allotment of funds to states with installation of smart meters: Power engineers’ body

“The ministry claims that the installation of smart meters will result in an overall improvement in the technical and financial performance of state electricity utilities, yielding significant revenue savings. While metering electricity supply at the consumer’s end can yield some benefits, its viability critically depends on the cost of meters and their maintenance, said E A S Sarma, former power secretary to the Union government, in a press release.

“The Centre has made several unilateral moves that tend to reduce the political space available to the states in violation of the spirit of federalism that lies at the core of our constitution. States must collectively resist such moves, said Sarma in his letter.

The Punjab State Electricity Board (PSEB) Engineers Association claimed that a new smart meter costs around Rs 6,600, and the grant is Rs 900 per unit. The cost of the existing meters is Rs 645, and the net grant stands reduced to Rs 250 per meter, it said.

The Punjab State Power Corporation Limited (PSPCL) will have to shell out Rs 10,000 per meter, including service charges. The association said the Union government’s move would lead to “backdoor entry” of private players in power distribution in Punjab.

AIPEF spokesperson V K Gupta said prepaid smart meters will speed up the process of handing over government-run distribution companies to private players and ease the process of privatising the distribution system.