Nagpur: Power consumers in Maharashtra are going to face another steep hike in electricity rates due to high cost of procurement of smart meters on part of Maharashtra State Electricity Distribution Company Limited (MSEDCL).
The Maharashtra Veej Grahak Sanghatana said that MSEDCL had expected a price of Rs 6,048 when it floated tenders, but post negotiations with suppliers the price rose to Rs 11,987. Now, the near double rise in smart meter cost would ultimately be recovered from consumers and hence, expect a rise of minimum 30 paise/unit, claimed Pratap Hogade, Convenor of Sanghatana, and an expert on energy matters.
Today’s Rate
Friday 22 Nov. 2024
NGO Janmanch has opposed the MSEDCL’s drive to install smart prepaid meters for 2.5 crore consumers in the state, which will cost Rs 27,000 crore. The NGO claimed the move is a gross mismanagement of public funds, designed to unnecessarily burden the consumers financially.
The Central Government is going to provide just 60 percent aid to State Discoms for undertaking infrastructure works to overhaul the ageing power infra. This includes installation of new poles, laying new lines, installing new feeders, capacitor boxes, setting-up new sub-stations and affixing of new transformers. Similarly, under National Smart Grid Plan, an aid of only Rs 900 crore is being provided by Centre while rest of the cost has to be borne by MSEDCL.
MSEDCL has targeted changing 2.25 crore electricity meters for which it has finalised tenders worth Rs 27,000 crore and excluding the aid component,still Rs25,000 crore would be needed. Now, the Discom is going to tap the financial institutions to raise money and the same will later be shown as expenditure and seek recovery of the same, by seeking increase in the power tariff, explained Hogade in detail.
The Sanghatana also pointed out that in Uttar Pradesh when the suppliers quoted a price of Rs 10,000 per meter, the tender was rejected by officials citing high cost. But in Maharashtra on the contrary, though companies jacked up the price over and above the expected range, still the State Government readily accepted it without a murmur of protest, which is quite strange. NGO Janmanch has opposed the Maharashtra State Electricity Distribution Company Ltd (MSEDCL)’s drive to install smart prepaid meters for 2.5 crore consumers in the state, which will cost Rs 27,000 crore. The NGO claimed the move is a gross mismanagement of public funds, designed to unnecessarily burden the consumers financially.
According to Janmanch founder Rajeev Jagtap, the Union Govt will provide a subsidy of only Rs 2,000 crore, while MSEDCL will manage the remaining amount through loans. He said this will eventually lead to a hike in power tariff, impacting all categories of consumers. Jagtap further argued that electronic meters installed a few years ago in place of old meters are working efficiently.
He also claimed that some companies involved in smart metering works have controversial backgrounds. Citing the Electricity Act of 2003, Jagtap emphasized that consumers have the right to choose between prepaid and postpaid services without coercion. He argued that if existing meters are in good condition, replacing them with smart prepaid meters without explicit written consent from consumers is unjustifiable.
