Thiruvananthapuram: Even as all power consumers in the country will have to install smart meters by December 31, 2025, the Kerala Government may soon find itself being ousted from the Centrally-aided Revamped Distribution Sector Scheme (RDSS) in this regard as it has objected to a key provision.
The State has sought legal advice on the liabilities it may incur upon pulling out of the scheme. The Kerala State Electricity Board (KSEB) will lose out a whopping Rs 4,000 crore assistance as envisaged in the nation-wide scheme.
The Government of India scheme "aims to reduce the Aggregate Technical & Commercial (AT&C) losses to pan-India levels of 12-15% and Average Cost of Supply (ACS)-Average Revenue Realised (ARR) gap to zero by 2024-25."
Kerala has made it clear that it can’t carry out the TOTEX (total expenditure) mode put forward by the Centre as part of the project implementation.
Bone of contention
The State is not against the RDSS scheme and the smart meter as such, but it has taken a stance that it can’t implement the TOTEX mode by which the contract company will install and maintain smart meters meeting the full expense, which will have to be then paid back in installments.
The move follows the objection of several KSEB employees’ unions and the CPM politburo. They argue it will lead to the privatisation of the power distribution system in the state.
Project stalls
The Centre had earlier sanctioned the roll-out of the scheme worth Rs 8,250 crore in the State’s power sector. This amount need not be repaid; but as per the terms and conditions, nearly 37 lakh smart meters with prepayment mode have to be installed in the first phase.
The initial tender floated for the smart meter project in Kerala could not be implemented as the Government took no action as it realised the trade unions are against the scheme. It also directed not to invite subsequent tenders. With this, it became clear that the State won’t be able to install 37 lakh smart meters by December.
The lowest bid received after the KSEB floated the initial tender is Rs 9,250. The state power utility had fixed Rs 6,000 as the basic rate for the installation of a smart meter.
Though the bid was opened and submitted for the consideration of the government, a decision is yet to be taken.
Higher quote another bother
The state government can give approval if the minimum rate quoted by the company is up to 10% higher and the KSEB receives 25%. However, here the minimum rate quoted by the company is 50% higher. If the tender is executed, then the company will have to be paid back Rs 89 a month for a single meter for a period of 10 years. Even if the subsidy is deducted, Rs 79 per month needs to be paid.
The new generation energy meters are used to record electricity consumption in real-time accurately. It is proposed to replace the existing slab system.
