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This is an archive article published on March 30, 2023
Punjab electricity board engineers see privatisation bid in smart meter project
The association has written to CM Mann that acceptance of conditions for the smart prepaid metering project would prove detrimental to the financial interests of the state’s power sector.
No penalty can be imposed beyond 20 per cent of any AMISP charges for any non-performance. (File Representational Photo)
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Punjab electricity board engineers see privatisation bid in smart meter project
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The Punjab State Electricity Board Engineers Association has termed the conditions set by the Ministry of Power for the installation of smart meters as helpful only in privatising the power distribution.
The association has now written to Chief Minister Bhagwant Mann that acceptance of conditions for the smart prepaid metering project would prove detrimental to the financial interests of the state’s power sector and that the costs and benefits and other aspects should be discussed with all the stakeholders.
“Advanced Metering Infrastructure Service Provider (AMISP) for smart prepaid metering is for a period of 10 years. They will purchase meters through their own suppliers. Then the installation of smart meters against new connections or replacing old meters and receiving payment and resolving complaints of consumers will be their responsibility for a period of 10 years. This condition will result in PSPCL (Punjab State Power Corporation Limited) having no control over its source of revenue. Even the PSPCL cannot interfere in the area allotted to AMISP. The PSPCL will have no right to develop its own system without the consent of a private party,” read the letter that the association has written to Mann.
No penalty can be imposed beyond 20 per cent of any AMISP charges for any non-performance. This means the AMISP is guaranteed of 80 per cent revenue even without providing any service, the association argued.
The proposed total expenditure on smart metering is Rs 5,768 crore. Though there will be a grant of Rs 875 crore, there is a gap of Rs 4,900 crore, which will be funded by the PSPCL through loans. The Power Finance Corporation has agreed to give a loan with conditions.
The association said that the cost of a new smart meter was around Rs 6,600 and the grant was Rs 900. The existing meters cost Rs 645. Thus the net grant stands reduced to Rs 250 per meter. The PSPCL will have to shell out about Rs 10,000 per meter including service charges.
The billing efficiency of the PSPCL is 98.2 per cent now and the smart meters may not increase this more than by 0.5 per cent, they argued.
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The only advantage to installing smart meters is the real-time data availability of metering parameters, the association said, adding that remote disconnection of consumer supply at a cost almost 10 times that of ordinary digital electronic meters could not be justified. Addressing any damage or theft of the meters or theft of electricity would be the responsibility of the PSPCL.
The purpose of installing smart meters should be to help PSPCL or its consumers, but here all the benefits will be given to service providers, the association alleged.
The revenue collection should be done by the PSPCL and not by the service provider.
There is no benefit from installing smart meters when power is to be given free, the association argued further.
© The Indian Express Pvt Ltd
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