Thiruvananthapuram: All power consumers in the country will have to install smart meters by December 31, 2025. The efforts of the Kerala State Electricity Board (KSEB) to install 37 lakh smart meters in the first phase have reached nowhere due to objections from various quarters. As a result, the State is in danger of losing out a whopping Rs 2,200 crore in Central funds if it fails to complete the first phase of tender proceedings before June 15.
The warning in this regard was issued by Union Power Minister R K Singh the other day during a high-level meeting when he clearly told the electricity board representatives that it’s better for the state to withdraw from the scheme and forgo the subsidy if it failed to award the contract by June 15. Though the Centre allocated Rs 67 crore earlier for the first phase, the State could utilize only Rs 28 lakh. The lapse proved costly as it was forced to repay the remaining amount.
The Centre had earlier sanctioned the rollout of its Revamped Distribution Sector Scheme (RDSS) worth Rs 8,250 crore in Kerala. The amount need not be repaid.
The States will be given 15-22 per cent subsidy for the project. A special subsidy of 33 per cent will be given to the States which desperately need additional help.
When the Union minister asked when the State could complete the first phase of tender proceedings the board members tentatively cited last June But the minister clearly said it couldn’t go beyond the June 15 deadline. He also directed that the second phase tender should be issued by December.
The state power regulatory commissions are only empowered to give a maximum of two extensions of time for the project implementation after the deadline. But two consecutive extensions of time within six months will not be allowed.
Though the KSEB has started the tender proceedings, State Electricity Minister K Krishnankutty has suspended the same due to stiff opposition.
The new-generation energy meters are used to record electricity consumption in real-time accurately. It is proposed to replace the existing slab system. There will be no fixed charge for consumers, however, the rates will be higher during the night. However, the left-affiliated unions in the Kerala State Electricity Board (KSEB) have opposed it strongly, alleging that the move is part of the privatization bid of the power sector.
Four-stage plan
Kerala has 1.3 crore power consumers. The installation of new meters is planned in four stages. During the first stage, 37 lakh consumers will be covered. Companies may charge Rs 6,000 for the installation of the prepaid meter and for the maintenance of it for 10 years. A smart meter could be bought for Rs 2,500-3,500.