Media Release

Bengaluru, Mar 24: The installation of smart meters in new electrical setups within the Bescom jurisdiction is being carried out with complete transparency, with a scientific pricing structure in place, Bescom managing director Dr N Shivashankara said today.

The press conference held at the Bescom office on Monday under the presence of the energy department's additional chief secretary Gaurav Gupta and KPCL managing director Pankaj Kumar Pandey, provided information about the state's power situation and the measures taken by the energy department to ensure a stable power supply.

The Karnataka Electricity Regulatory Commission released guidelines for installing smart meters on March 6, 2024. As per these guidelines, installing and replacing smart meters will take place in phases. Existing customers will have the option to install smart meters, while new and temporary connections will be required to have them installed, Dr N Shivashankara said.

Dr N Shivashankara emphasised, "The energy department's smart meter scheme is a significant step towards a digital approach for electricity bill payments and real-time electricity usage data. These smart meters are not just a solution to meter and billing issues but also a tool for customers to manage their electricity usage effectively. The system enables ToD (Time of Day) rates, remote reading, auto connection, and disconnection. In case of a power outage, the electricity distribution company will receive immediate updates, streamlining and speeding up the power restoration process."

Most states have implemented the RDSS system, and in accordance with its guidelines, these states issued tenders that covered the costs of both smart meters and software. In these states, electricity supply companies purchase and install smart meters for customers, subsequently recovering the cost of the meters and their technical maintenance by incorporating it into the electricity tariff.

For instance, with the central government's subsidy, the monthly cost for each smart meter over 10 years is Rs 120.34 in Maharashtra, Rs 117.81 in West Bengal, Rs 148.88 in Sikkim, Rs 130.30 in Manipur, and Rs 115.84 in Madhya Pradesh. This cost is reflected in the electricity bill and collected from customers. Additionally, in these states, smart meters are being installed simultaneously for all customer installations (bulk replacement)," Dr Shivashankara explained.

Since smart meters will only be installed for temporary and new connections in the state, the number of installations will be low, and smart meters will need to be installed separately in various locations across the state. Additionally, contractors will need to retain skilled workers for 5 years for this work. As a result, they will have to deploy more staff and make multiple trips to replace fewer meters. Therefore, the cost of the smart meter is reasonable," BESCOM MD clarified.

The process of installing smart meters began in urban areas on February 15, and in the coming days, the installation process will begin in rural areas. Currently, Bescom has stock for 30,600 smart meters," the MD further added.

Tender process as per the regulations

As per the regulations, the tender process followed the standard bidding documents provided by the ministry of power and complied with the KTPP Act. The tender was issued on September 26, 2024. With the approval of the Bescom board of directors, the contract was awarded to Rajashree Electricals, who submitted the lowest bid, on December 23, 2024," Dr Shivashankar explained.

What are the features of a smart meter?

Smart meters, which differ from traditional models, are equipped with a GPS-based communication system for data collection and offer server and cloud connectivity. Utilising Advanced Metering Infrastructure (AMI) technology, these meters enable direct communication between customers and Bescom by gathering electricity usage data.

Users can monitor real-time electricity usage, voltage, and power factor through a mobile app and access recharge options. Customers can make advance payments and recharge for their desired duration, allowing them to use electricity as needed. In a power outage, electricity can be restored immediately upon bill payment.

What is RDSS?

"Following the central energy authority directive, the ministry of power introduced the Revamped Distribution Sector Scheme (RDSS) in 2021-22. Under this scheme, the central government would provide 60% of funding for developing electrical infrastructure if accepted.

Additionally, the central government would contribute 15% of the total cost, or Rs 900, to replace smart meters. However, the scheme stipulated that state governments could only benefit if they cleared any outstanding subsidies and dues owed to the respective electricity supply companies.

Furthermore, it was mandatory for all customers to install smart meters. Since the government did not agree to these conditions at that time, the state did not accept the central RDSS scheme. Had the central government's RDSS scheme been accepted, all customers, including existing ones, would have been required to install smart meters. Under the RDSS scheme, the pricing for smart meters and software is determined," it was clarified.