New Delhi: In a bid to decrease power distribution losses and improve the financial health of power distribution companies (DISCOMs), the Union Government approved a scheme worth Rs 3.03 lakh crore on Wednesday. Among other things, the scheme seeks to improve the quantity, reliability, and affordability of power supply to consumers through an efficient distribution mechanism.
For this purpose, the government has asked DISCOMs to install 25 crore prepaid smart electricity meters across the country. In the first phase, 10 crore meters will be installed by December 2023 for all consumers except agriculture consumers.
According to the government, these smart meters would allow consumers to monitor their electricity consumption on a real-time basis instead of a monthly basis. Prepaid smart meters will also help them in the usage of electricity as per their own needs and in terms of the resources available.
What is a prepaid smart electricity meter?
ETV Bharat explains the ABCs of prepaid smart electricity meters.
As the name suggests, a smart meter is a new kind of electricity meter that can digitally send meter readings to energy suppliers as well as to customers over telecom networks. The new system reduces human intervention in the billing process. It also helps DISCOMs in estimating actual power demand in a locality.
What is the prepayment mechanism of a smart meter?
Similar to a prepaid mobile connection, a customer pays the amount before using the electricity. Prepaid meters operate based on the amount available in the customer’s account. If there is no balance amount in the account, the supply gets disconnected. However, the power distribution company will not charge any extra amount for restoration.