Smart meters cost high owing to ESCOMs’ dues: Karnataka Energy minister

Under RDSS, the Union government offers 15% or Rs 900 subsidy per metre (whichever is higher) and an additional 7.5% subsidy for bulk installation of smart meters.
Power Minister KJ George pressmeet with along with officials at Vidhna Soudha in Bengaluru on Wednesday.
Power Minister KJ George pressmeet with along with officials at Vidhna Soudha in Bengaluru on Wednesday.Photo | Nagaraja Gadekal
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3 min read

BENGALURU: Smart meters cost in Karnataka is the highest in the country as the state is unable to get the Centre’s subsidy. Ensuring that there are no pending bills with Energy Supply Companies Limited (escoms) is one of the conditions for getting the subsidy.

According to the energy department, various government agencies owe Rs 8662.37-crore to escoms. The rural development and panchayat raj (RDPR) department owes Rs 4,470.82 crore, followed by the urban development department Rs 2,223.01 crore. Compared to last year, the total dues increased by 60.25% (Rs 3,256.37 crore).

Energy Minister KJ George on Wednesday said many government agencies have not cleared their dues to ESCOMs. Because of this, the state government is unable to implement the Union government’s Revamped Distribution Sector Scheme (RDSS) to reduce the meter cost.

Under RDSS, the Union government offers 15% or Rs 900 subsidy per metre (whichever is higher) and an additional 7.5% subsidy for bulk installation of smart meters. George said, “Had we been able to implement RDSS and follow the tendering process that other states follow, then consumers in Karnataka would pay only Rs 116 per month, per meter. We are also unable to give a written undertaking to the Union government by when the dues will be cleared. We cannot force the government agencies to clear their dues or say that if bills are not cleared, power supply will be cut.”

A senior official from the energy department said, “We have held 10 meetings with the finance department on the need to implement RDSS. The finance department stated that with Gruha Jyothi and irrigation pumpset subsidies to be paid, it is not possible for it to clear all dues.”

The official said several requests have been made to the government agencies to clear their dues. But they haven’t cleared their dues.

With the Centre’s subsidy, the monthly cost of each smart meter of over 10 years is Rs 120.34 in Maharashtra, Rs 117.81 in West Bengal, Rs 148.88 in Sikkim, Rs 130.30 in Manipur, Rs 115.84 in MP, Rs 110 in Jammu and Kashmir and Rs 109 in AP.

“Most states have implemented RDSS. In accordance with RDSS guidelines, those states issued tenders that covered the costs of both smart meters and software. In those states, electricity supply companies purchase and install smart meters, subsequently recovering the cost of meters and their technical maintenance by incorporating it into the electricity tariff,” the official said.

FKCCI opposes bill surcharge

The FKCCI has opposed the 36 paise surcharge per unit of electricity and urged the government to reconsider it, as it affects industrial growth and economic development. Additionally, it has opposed the steep hike in guidance value, as it will directly result in an increase in property tax. FKCCI convened a joint meeting of all district industry bodies, including KASSIA and Peenya Industries Association, on Wednesday, to discuss issues affecting the industry. FKCCI president MG Balakrishna said the surcharge announced by the Karnataka Electricity Regulatory Commission will take effect on April 1, and will hit industries, commercial establishments, and small businesses.

DURAI

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