Thiruvananthapuram: Even after crossing the halfway mark in the first phase of its smart meter installation project, the Kerala State Electricity Board (KSEB) continues to rely on manual meter reading and billing, as the required software has not yet been integrated.

Although the system is yet to become fully “smart”, KSEB is now moving ahead with the tendering process to procure an additional 50 lakh smart meters as part of the second phase of the project, as any failure to comply with the stipulated guidelines could lead to the loss of Central assistance.

In Kerala, the project is being implemented under the capital expenditure (Capex) model instead of the total expenditure (Totex) model recommended by the Centre. While the Centre has given in-principle approval for the Capex model, it has not yet decided on the financial assistance announced at the time of meter installation.

Stating that there is no change in tender conditions under either model, KSEB is preparing to approach the Centre again. Under the Totex model, the project would have been eligible for Central financial assistance amounting to 15 per cent of the total cost.

Totex and Capex
Under the total expenditure (Totex) model, the company awarded the contract installs the meters by meeting the entire cost upfront and recovers the expense from consumers, while remitting the electricity bill amount to the Kerala State Electricity Board (KSEB). The State, however, proposed an alternative after assessing that this model would place an additional financial burden on the public.

The alternative is the capital expenditure (Capex) model, under which KSEB bears the initial investment, while the contract-winning firms install the meters and the required software. Although the cost is still recovered from consumers, it is argued that the overall expenditure under the Capex model is more than 50 per cent lower than that under the Totex model.

What the project aims
The key objectives of the project are:

• To prevent power leakage and theft
• To enable consumers to purchase electricity through advance payment, helping make KSEB a dues-free utility
• To reduce operational costs by eliminating posts such as meter readers

Phase One
Meters installed so far: 1.75 lakh
Meters to be installed at government offices, public sector institutions, HT consumers, distribution transformers, 11 kV and 22 kV feeders, and electrical division boundaries.

Phase Two
Estimated project cost: ₹3,260 crore
The project in this phase aims to cover solar power producers (prosumers), consumers using more than 150 units per month, and new electricity connections.