BHUBANESWAR: After facing strong resistance from electricity consumers over installation of smart meters, the Tata Power-managed distribution companies have urged the Odisha Electricity Regulatory Commission (OERC) to consider their proposal for recovery of the cost of smart meters under capital expenditure (Capex) plan.
The plea of the distribution companies (discoms) came in the wake of widespread protest from farmers and domestic consumers of Bargarh district who dumped there smart meters in front of the offices of TPWODL alleging unethical practices. The common complaint was that smart meters are means to fleece the consumers through inflated billing.
Filing its annual revenue requirement and retail supply tariff application before OERC for 2025-26, the Tata Power Central Odisha Distribution Limited (TPCODL) said the existing arrangement of meter cost recovery through monthly rent is a major impediment in installing smart meters.
“Consumers who have mechanical meters are opposing their replacement as they believe it is to get meter rent which is not the correct understanding. We are trying our level best but the issue is not getting resolved,” said the applicant.
Noting that various regulatory frameworks mandating that every consumer should have smart meters so that they can get information about their electricity consumption on a real-time basis besides the other benefits, TPCODL said the consumers will be able to find areas of inefficiency and excess energy consumption thereby taking prompt action to reduce it.
“With availability of real-time data, the discoms will be able to plan their power purchase more efficiently thereby reducing burden of excess power purchase on the consumers,” it further contended.
The only feasible option is to install smart meters under Capex route and abolish the existing method of recovering meter cost through meter rent. It is estimated that the impact of the above changes in tariff would be negligible. This apart, the state will be able to meet the target set by the central government in the area of smart meter installation, the company said.
As per the directive of the OERC while passing the RST order for 2024-25, the discoms have filed separate applications for consideration of the meter cost under Capex mode for hearing along with ARR, the utility said.