Union Power Ministry seeks more details from Kerala on alternate model for smart meter roll-out

Kerala seeks Union Power Ministry's approval for alternative proposal to roll-out smart meters in a consumer-friendly way. Union Minister asked Kerala to submit details of proposal. Kerala had earlier decided not to implement project on TOTEX model due to additional financial burden for consumers. KSEB to develop software for billing & use K-FON for communication systems; data centre to store data.

The Union Power Ministry has sought more details from Kerala regarding its alternate proposal for a more consumer-friendly roll-out of smart electricity meters, Electricity Minister K. Krishnankutty said on November 16, 2023.

In a November 8, 2023 letter, Union Power Minister R.K. Singh asked Mr. Krishnankutty to ask the officers concerned to submit the State’s proposal in detail to the Union Ministry “so that it can be examined from all aspects, including extant guidelines of the scheme.”

In August 2023, Kerala decided not to implement the smart meter project on TOTEX (total expenditure) model on the grounds that it entails additional financial burden for the consumers. The move to adopt the TOTEX model had drawn strong criticism from the power sector unions in Kerala.

Also, meter firms which responded to a Kerala State Electricity Board (KSEB) tender for implementing the project using this model had quoted prices almost 45% higher than expected. This tender was later cancelled following the intervention of the government.

Subsequently, the Kerala Government had directed the KSEB to submit an alternate, cost-effective proposal within three months. This process is on, Mr. Krishnankutty said.

On July 26, Mr. Krishnankutty wrote to Mr. Singh seeking three more months for firming up its alternate model which would also see the use of the Kerala Fiber Optic network (K-FON) for the communication systems needed for the smart meter project. Kerala’s request for permission to go ahead with an alternate proposal was discussed in the Ministry.

Under the alternative proposal, the KSEB, the implementing agency, would develop the software for billing and allied services for the smart meter project. KFON will be used for the communication systems, and the data centre of the KSEB would store all the data.