Nagpur: The day the Maharashtra State Electricity Distribution Company Limited (MSEDCL) announced that pre-paid smart power meters would be installed replacing all 2.25 crore meters across the State, there is a strong opposition to the move from all quarters including Maharashtra Electricity Consumers’ Association.
Pratap Hogade, an energy expert and President of Maharashtra Electricity Consumers’ Association has claimed that MSEDCL will recover the cost of smart or prepaid electricity meters, installation and maintenance charges from consumers from April 2025.
According to Hogade, the MSEDCL will spend Rs 16,000 crore as 40% share towards replacing all 2.25 crore meters in the state with prepaid meters. The rest 60% will be shared by the Central Government. However, the investment will be recovered from consumers and taxpayers.
He further said that in the Rs 40,000 crore prepaid electricity meter project, the cost of one meter is Rs 2,610 and it will be Rs 6,320 if added O&M cost of 5 years. AdaniOnline and 3 more companies that donated crores through electoral bonds will get Rs 12,000/meter from the MSEDCL, as per the energy expert.
“There is no need for replacing all meters. Still, the MSEDCL is gearing up to replace 2.25 crore meters across Maharashtra. Consumer cannot be compelled to adopt prepaid bill as per the Act, then, why prepaid meters required to be installed,” Hogade questioned.
The President of Maharashtra Electricity Consumers’ Association further questioned the utility and benefits of the smart power meters. “It is nothing but burdening the already suffering consumers. Nobody has come forward and explained the use and benefits of smart meters. As per Supreme Court, electricity is a basic right of citizens and just cannot be cut. But with smart meter, no one has to cut the power. It’s just gone,” he stressed.
Hagade demanded that instead of installing the smart meters at residential consumers, the MSEDCL should install at the industries.
MSEDCL had earlier claimed that the meters will be installed free of cost and the plan to replace the mechanical meters with smart or prepaid meters is a step towards privatisation of power supply distribution. “The Centre is going to spend money earned from taxpayers. MSEDCL is going to seek loan to spend Rs 16,000 crore towards the programme. From April 2025, the loan amount will be recovered from power bills,” said Hogade.
He said that of the four meter suppliers, only one is the actual manufacturer. “The contract has been awarded to four companies to supply, install, maintain the meters. Only one is the actual manufacturer. The rest will get cheaper parts probably from China and assemble them in India before installation. The whole project is a step towards privatisation. There will be no new hiring by MSEDCL. It will facilitate more private players to jump into the power distribution sector,” said Hogade.
Hogade 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.
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 energy expert 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. The move is a gross mismanagement of public funds, designed to unnecessarily burden the consumers financially.
