Smart meters work like mobile phone prepaid scheme

Mysore/Mysuru: In the coming months, the Chamundeshwari Electricity Supply Corporation (CESC) is poised to commence the deployment of prepaid smart electricity meters within its jurisdiction under the National Smart Grid Mission (NSGM) and Integrated Power Development Scheme (IPDS). This initiative follows an advisory from the Ministry of Power that prioritises the installation of such meters.

Upon installation, the inconvenience of queuing to pay electricity bills will become a thing of the past. The era of receiving monthly bills and appointing meter readers for usage assessments will be replaced by this new approach. This method draws inspiration from prepaid mobile currency charges, effectively introducing a prepaid electricity usage system that eradicates concerns about meter precision.

Under this emerging system, consumers can pro-actively make payments for their anticipated electricity consumption, offering an efficient method to manage their energy usage. Additionally, the necessity for annual deposits is eliminated.

The inception of the prepaid smart electricity metering system has been initiated by the Karnataka Electricity Regulatory Commission’s (KERC) smart meter assessment policy for 2023, which was activated on Aug. 4. This directive propels the integration of prepaid smart meters.

How does the system work?

Prepaid smart meters are versatile and applicable not only in residences but also in factories and pumpsets — essentially any scenario involving electricity consumption. Differing from the conventional monthly billing model that hinges on meter reader visits, the prepaid smart electricity meter operates akin to mobile prepaid charging.

Similar to topping up mobile credit in advance, individuals can prepay for their desired electricity quantum. This empowerment enables customers to manage their energy expenses according to their requirements.

Customers can replenish their electricity balance as needed, with notifications dispatched to their linked mobile numbers throughout the recharge process. These notifications serve as reminders to recharge before the current balance is depleted. Upon successfully recharging their electricity usage, customers receive a mobile notification confirming the transaction’s completion.

Pay as per use

This system ensures customers only pay for the precise amount of electricity they intend to consume, fostering awareness of their consumption patterns. This, in turn, encourages responsible usage. Smart meters are instrumental not only in enhancing efficiency but also in curbing losses. Through bidirectional communication, personnel can remotely assess meter status, record readings and perform remote power re-connections or disconnections.

In contrast to the prevailing system where bill non-payment leads to disconnection, prepaid smart electricity meters guarantee uninterrupted service, even in cases of overdue bills. The charging process is linked to electricity access. Furthermore, this new system addresses concerns regarding defects in traditional meters that lead to inaccurate billing.

Consider a household consuming Rs. 1,500 worth of electricity monthly. In such cases, they will receive a bill within this range. By prepaying the amount, they will receive usage updates via SMS. Unlike cellular providers, power will not be abruptly cut off upon exhausting the recharged amount. Instead, a grace period is afforded for account replenishment, ensuring continued electricity supply, officials noted.

100 households tested

The implementation of prepaid smart electricity meters has successfully undergone testing in pilot projects, involving 100 households in Mysuru and Bengaluru as test-beds. The decision to install prepaid smart electricity meters has been announced based on the smooth implementation and absence of issues.

Citizens have been granted a 30-day window to share feedback and opinions with the KERC. The potential scope of this transition is substantial, given the extensive consumer base of 3.2 million within the CESC jurisdiction.

The substantial revenue, amounting to Rs. 9,108 crore, previously collected from consumer deposits, will now be reallocated for installation of prepaid smart meters. Moreover, the upfront fee for new electricity meter installations has been waived, offering a convenient avenue for those interested in adopting this new system.

It is important to note that while KERC has not made the prepaid meter mandatory, it stands as an innovative option for consumers.

Beneficial to all, ensures transparency

The initiative is commendable and will prevent electricity pilferage. Illegal connections can be avoided and there will be transparency in the system. Consumers have the advantage of using power as per their family needs and also industrial needs. This will benefit them as they do not need to pay a whopping bill at the end of every billing cycle.” — Prabhakar, former member of KERC Suggestions Committee

Prepaid meter system is a result of protests and struggles by industrialists and entrepreneurs for a long time. The industries have shelled out crores of rupees in the form of deposits and power supply companies give a paltry 4.5 percent interest for the deposits. If the smart meter system comes into force, the deposit money will be returned and there is no need of paying deposits annually. — Suresh Kumar Jain, General Secretary, Mysuru Industries Association