The Smart Meter National Programme (SMNP) will speed up the process of replacing conventional meters with prepaid smart meters in the country. It aims to replace 25 crore traditional meters with prepaid smart ones in the next five years with an investment of Rs. 1.5 lakh crore. This step will be extremely effective in enhancing the operational and financial efficiencies of the power distribution companies (Discoms).
Key highlights
- The move will improve billing and collection of power charges for Discoms.
- SMNP will also assist in tracking energy consumption patterns, reducing power theft, and improving supply schedules.
- SMNP will ensure greater involvement of private players to speed up the installation process.
- Discoms will allocate sections of their areas to private concessionaries through open auctions. These companies will be responsible for buying, setting up, and maintaining smart meters for a period of 10 years.
- To attract banks and investors and ensure timely returns, companies will be allowed to start projects even at 5% of the completion of the total scope of work. This will help generate revenue with which debt can be paid.
- The programme also encompasses provisions to set up a Direct Debit Facility (DDF). All online payments made by consumers will go to a designated account, from which payments to project bank accounts will be prioritized.
Smart Meter National Programme
- SMNP is a Government of India initiative that is being implemented by the Energy Efficiency Services Limited (EESL), which is a joint venture of four public sector enterprises- NTPC, PFC, REC, and Powergrid.
- It aims to promote smart meters and improve Discoms’ efficiencies and financial standing.
