Not all state power distribution cos see financial benefit in smart meters

The Union power ministry has an ambitious plan for 100 per cent smart metering over the next two years. However, not all state distribution companies (discoms) see a financial benefit from smart meters.

Also, vendors are reluctant to supply to some states, on payment concerns. “I don’t see a benefit to make that huge an investment, when the returns are not impressive. It does not do much to change my financials significantly,” said a top official from a state discom, who did not wish to be identified.

A smart meter has a modem (communication device) and a remote switch by which demand, supply and billing can be monitored and controlled remotely. Data from these is collected in a cloud server. This reduces energy theft, improves billing and bill collection. It also helps discoms collect data on consumer demand patterns, useful for improved planning of supply.