The central government has asked all of its ministries and organisations to switch over to prepaid smart meters on a priority basis. The Ministry of Power had issued its advisories to all central ministries and administrative organisations on August 12. The Ministry of Finance also issued a clarification regarding the switchover, asking its ministries and departments to furnish advance payments for the meters without requiring bank guarantees of the same.

The move is aimed at helping electricity discoms recover payments more easily from government departments while at the same time also encouraging more efficient energy use by all government offices. The central government also hopes that state governments will follow suit and install smart prepaid meters as well.

It is estimated that government offices owe Rs 48,664 crore at the end of FY 2020-21 to discoms, just under 10 percent of the annual turnover of the entire power sector.

The financial health of various discoms throughout the country has been an issue of concern for both central and state governments. Distribution companies are the weakest link in the power sector, with losses mounting due to operationally inefficient practices, along with pecuniary pressure of interest payment due to payment delays on the part of government offices.

The central government has already approved the Revamped Distribution Sector Scheme, which seeks to optimise and revitalise discoms across the country. Part of the process includes the installation of prepaid smart meters for all consumers apart from the agricultural sector. Under the scheme, government offices will need to switch over to the new meters on a priority basis.

(Edited by : Shoma Bhattacharjee)

First Published:Aug 12, 2021 8:53 PM IST