CHENNAI: Even as the Tamil Nadu Power Distribution Company (TNPDC) remains hesitant to introduce prepaid smart meters, a section of consumers have expressed support for the initiative.
This recommendation follows an advisory from the union power ministry, directing TNPDC to consider a prepaid meter system for better flexibility and consumer convenience.
In a recent meeting with TNPDC officials in Chennai, Union Minister for Power and Urban Affairs Manohar Lal urged officials to consider both prepaid and postpaid smart meters, suggesting the possibility of special benefits for those who opt for prepaid meters. Tamil Nadu’s Electricity Minister V Senthil Balaji, who was present at the meeting, emphasised the state’s current stance on the issue.
A senior official told TNIE, “Of the 3.5 crore electricity consumers across Tamil Nadu, around 2.75 crore households benefit from 100 units of free electricity, while nearly 25 lakh farmers receive free power. If we move to a prepaid system, these groups could face challenges.”
The official further noted adopting prepaid meters would necessitate a Direct Benefit Transfer (DBT) system for subsidies, as the state government currently provides these subsidies directly to TNPDC.
T Sadagopan, president of the Tamil Nadu Progressive Consumer Centre, advocated for prepaid meters, pointing out that TNPDC struggles with timely meter readings due to staff shortage, causing consumer frustration.
“With a prepaid system, consumers can manage their payments like they do with DTH or mobile recharges, and avoid the burden of deposits,” he said, urging TNPDC to introduce both prepaid and postpaid options, allowing consumers to choose what works best for them.
S Nagalsamy, a former member of Tamil Nadu Electricity Regulatory Commission, added, “The Electricity Act requires all distribution companies to operate profitably. But, the Tamil Nadu Electricity Board currently has a debt of Rs 1.5 lakh crore. Introducing the prepaid system could help the utility collect payments in advance,” he said.
He suggested that TNPDC could offer special incentives for prepaid users, adding that the current tariff system with multiple slabs could be simplified under the new model.
While TNPDC has not yet committed to prepaid meters, officials indicated they aim to introduce postpaid smart meters by 2027.
TNPDC installed 1.25 lakh smart meters in T Nagar, Chennai under smart city project on a trial basis.