Smart meter to be rolled out in 2 phases across Tamil Nadu

CHENNAI: The ruling DMK government’s electoral promise to implement monthly electricity billing is likely to be delayed, as the Tamil Nadu Power Distribution Corporation Ltd (TNPDCL) has decided to roll out the much-anticipated smart metering programme in two phases. Additionally, with many pushing for a switch to monthly billing, EB unions point at slabs being slashed, not the bill.

According to the TNPDCL sources, the first phase will involve the installation of 1.44 crore smart meters. These will be fitted for all low-tension three-phase consumers, single-phase consumers whose bimonthly consumption exceeds 400 units, all high-tension (HT) consumers, and distribution transformer (DT) meters. The second phase, covering the remaining consumers, will commence only after the successful completion of the first phase.

Initially, the TNPDCL had proposed to implement the smart metering project in a single phase by installing 3.04 crore smart meters at an estimated cost of Rs 19,235 crore. However, under the revised plan, 1.44 crore meters will be installed in the first phase and 1.60 crore in the second. The first phase will include 93.59 lakh single-phase meters and 45.57 lakh three-phase meters for low-tension (LT) consumers. The second phase will cover 1.57 crore single-phase meters and 3.90 lakh three-phase meters.

A senior TNPDCL official said the second phase would begin only after the first phase has been satisfactorily completed. The phased implementation is also expected to ease opposition from trade unions, who have expressed concerns that meter readers could lose their jobs. However, since manual reading will still be required for non-smart meters during the transition, this is likely to delay the rollout of monthly billing.

S Kannan, treasurer of the Central Organisation of Tamil Nadu Electricity Employees, welcomed the decision to implement the smart meters in two phases.

"It is a myth that electricity charges will come down with monthly billing. The tariff slabs will be halved, but the charges will remain the same. Free electricity for domestic consumers will also be reduced from 100 units over two months to 50 units per month," he said. He also criticised political leaders who, he claimed, were unaware of the tariff structure but continued to demand monthly billing.

The Tangedco re-invited bids for the smart metering project in March this year, under six packages covering all 12 distribution regions. This is the third time tenders have been floated, following earlier cancellations due to high costs and administrative issues. One of the previous bids was scrapped after Adani Energy Solutions Ltd (AESL) quoted a high price for one of the four packages.

The smart metering initiative is being implemented under the Union Government’s Revamped Distribution Sector Scheme (RDSS). The work will follow a Design, Build, Finance, Own, Operate and Transfer (DBFOOT) model. Under the revised plan, selected Advanced Metering Infrastructure (AMI) service providers must install the meters within 27 months of the contract being awarded and maintain the infrastructure for a total of 93 months. Tangedco will repay the cost on per meter, per-month rental basis over a 10-year period.