Electricity consumers in Maharashtra are about to face yet another significant hike in rates, all due to the hefty procurement costs of smart meters by the Maharashtra State Electricity Distribution Company Limited (MSEDCL). According to the Maharashtra Veej Grahak Sanghatana, MSEDCL initially estimated a price of Rs 6,048 when it floated tenders, but negotiations with suppliers led to a steep increase to Rs 11,987. Consequently, consumers will have to bear the brunt of this nearly doubled cost for smart meters, with an expected minimum increase of 30 paise per unit, as claimed by Pratap Hogade, the Convenor of Sanghatana and an energy expert.
NGO Janmanch has voiced opposition against MSEDCL’s initiative to deploy smart prepaid meters for 2.5 crore consumers in the state, with an estimated cost of Rs 27,000 crore. The NGO argues that this move signifies a mismanagement of public funds, needlessly burdening consumers financially. Additionally, the Central Government plans to offer only 60 percent aid to State Discoms for infrastructure upgrades aimed at modernizing the aging power infrastructure. These upgrades include the installation of new poles, laying new lines, setting up new feeders, capacitor boxes, constructing new sub-stations, and installing new transformers. Furthermore, under the National Smart Grid Plan, the Centre will provide only Rs 900 crore in aid, leaving the remaining costs to be covered by MSEDCL.
MSEDCL has set a target to replace 2.25 crore electricity meters, with finalized tenders totaling Rs 27,000 crore. Excluding aid, approximately Rs 25,000 crore is still required. To fund this, the Discom plans to secure loans from financial institutions, later categorizing it as expenditure and seeking recovery through increased power tariffs, as explained by Hogade. The Sanghatana highlighted a discrepancy, noting that in Uttar Pradesh, tenders were rejected for quoting high prices, whereas in Maharashtra, despite prices exceeding expectations, the state readily accepted them. NGO Janmanch opposes MSEDCL’s plan to install smart prepaid meters for 2.5 crore consumers, citing it as a mismanagement of public funds, intending to unfairly burden consumers financially.
Janmanch founder Rajeev Jagtap stated that the Union Govt will subsidize only Rs 2,000 crore, with MSEDCL financing the rest through loans, potentially leading to increased power tariffs affecting all consumer categories. Jagtap argued that previously installed electronic meters are functioning efficiently. He also questioned the backgrounds of some companies involved in smart metering and emphasized consumers’ right, under the Electricity Act of 2003, to choose between prepaid and postpaid services without pressure. Jagtap deemed replacing existing meters with smart prepaid ones without explicit consent unjustifiable.