Kerala has decided to place a fresh proposal before the Union Power Ministry for the roll-out of smart electricity meters in the State.
The State government has written to the Centre seeking three months’ time for the purpose. It has also directed the Kerala State Electricity Board (KSEB), the implementing agency, to scrap the current tender, prepare a new proposal that does not impose a financial burden on consumers and get it cleared by the Centre.
In early July, the Additional Chief Secretary (Power) had written to the Union Power Secretary seeking three more months’ time from July 15 for implementing the project. Electricity Minister K. Krishnankutty wrote to Union Power Minister R. K. Singh on July 26 reiterating the request.
The government had decided not to go ahead with the present proposal after power sector unions criticised the TOTEX model chosen for the implementation as being unfavourable to the State. Besides, the companies which responded to the bids invited by the KSEB for the purchase of 37 lakh meters for the Phase I implementation had quoted prices way higher than expected.
The State Power department, in an August 2 letter to the Chairman and Managing Director, KSEB, sought cancellation of the current tender. It also wanted the KSEB to prepare a new project for the roll-out which did not adversely impact the low-end consumer.
The lowest amount quoted in the present tender itself, if accepted, would have imposed a monthly additional burden of ₹79.59 on consumers whose monthly consumption is less than 100 units.
A component of the Centrally aided Revamped Distribution Sector Scheme (RDSS), the smart energy meter project had courted controversy in Kerala after power sector unions objected to the implementation model chosen by the KSEB management.
In 2022, the Centre had approved a project cost of ₹10,475.03 crore, which included ₹8,175.05 crore for smart meter roll-out and a ₹2,235.78-crore proposal for infrastructure and loss reduction in the distribution sector.
