This will help in clearing the outstanding electricity bills by their respective departments.
Preparations are being made to implement the system of prepaid smart metres across the whole country. In fact, the Ministry of Power has advised all the central ministries to instruct the organizations under their administrative control to install prepaid smart meters. After the installation, it is expected that the financial condition of the power distribution companies will improve, which are still burdened with the outstanding electricity bills.
Prepaid meter works in the same way as prepaid mobile. They also need to be recharged first, which means you pay for what you use. Notably, prepaid meters are already being used in many parts of the country.
After the installation of prepaid meters in central government offices, it will be implemented across the country. Prepaid smart meters will be installed in the homes of all electricity consumers.
This advisory comes after a clarification issued by the Finance Ministry, asking all central ministries and central departments to make advance payments for pre-paid electricity meters without insisting on bank guarantees. Along with this, all of them have also been asked to ensure accounting management.
According to the Ministry of Power, prepaid smart meters in all government departments will prove to be instrumental in ensuring the efforts of the government to not only bring the Electricity Distribution Companies (DISCOMS) on the path of financial stability and promote energy efficiency, but it will serve as a model for preparing the system for the states.
Under this scheme, the provision of prepaid smart meters is to be made for all electricity consumers except agricultural consumers in a phased manner. Preference will be given to installation of prepaid smart meters in all departments of the Central and State Governments including urban and rural local bodies and government boards and corporations. Its purpose is to ensure that government departments keep a proper budget for this and pay for electricity services whenever they are used. This will help in clearing the outstanding electricity bills by their respective departments.
The Government of India is committed to uninterrupted, reliable and quality power supply to all consumers, which requires an operationally efficient and financially sustainable power sector. DISCOMS are often seen as the most important but weakest link in the power sector because at the bottom of the value chain, the impact of their deteriorating financial condition comes upwards.
Apart from operational problems, distribution companies are also in a bad condition due to huge outstanding electricity bills, late payments and low payments on the departments of the central and state governments. According to the information received from the states, their government departments had electricity arrears of Rs 48,664 crore at the end of 2020-21. The government has approved the Revised Distribution Area Scheme, Reform Based and Outcome Linked Scheme to improve the operation efficiency and financial condition of the distribution sector.
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