Kerala Smart Meter; central subsidy of 1226 crores will not be received; customers to get additional electricity bill

THIRUVANANTHAPURAM: When Kerala rejects the central plan and installs its own smart meter, the additional responsibility will fall on the shoulders of the public. Smart meters will get central assistance of Rs 8205 crore but since the central model is not being implemented, 15 percent subsidy will not be available. 1226 crore subsidy amount will be lost. People will have to pay this amount in the electricity bill.

In the first phase, the smart meter is for government institutions and large industries. This will come to three lakh connections. The entire cost must be borne by the customer. In the central scheme, only those who installed smart meters would have been liable.

The cost of the first phase is 277 crores. This will be included in the electricity bill of everyone after it is paid by KSEB. Smart Meter will be installed for domestic customers in the second phase. The project should be started by December 31, 2025. It has been decided to invite separate tenders for purchasing smart meters and systems including software. It was decided to install three lakh smart meters on November 6, 2023.

Credit burden to the people

1. KSEB is implementing the scheme by taking loans. This amount plus interest will be brought before the Regulatory Commission in the Board's cost estimate. The tariff will be increased accordingly. Common people will have to bear the burden of installing smart meters, including in large industries.
2. In the central scheme, the cost of meter and coordinating software and maintenance for five years is borne by the contracting company. The consumers need to pay only the cost of the meter minus the central subsidy, in instalments.
3. Even if KSEB implements the Kerala model of CapEx (Capital Expenditure), the meter has to be purchased from private institutions. Smart meters are manufactured by 35 private companies including L&T. L&T's meter costs Rs 2922 and Polaris's Rs 9300.
4. KSEB will purchase meters from one company and software from another company. The pitfalls caused by this discrepancy are not trivial. In the central scheme both these are done by one company.