Author: PPD Team Date: 04/03/2025
The Karnataka Department of Energy (DoE) has planned to opt out of the Revamped Distribution Sector Scheme (RDSS) for smart meter installation. Instead, the state will implement the project independently.
Karnataka is among the few states that have not opted for RDSS, under which 197.9 million consumer smart meters have been sanctioned nationwide. However, officials have not disclosed the reason behind this decision.
Sources in the Bangalore Electricity Supply Company (Bescom) indicated that the project had been awaiting State Cabinet approval since 2021. Even if approval is granted, pending arrears of over Rs 65 billion for electricity supply companies (escoms) could hinder progress.
Experts cite multiple reasons for the delay in smart meter installation. One major issue is the Rs 88.45 billion security deposit paid by consumers to escoms. The transition to prepaid meters would likely lead to consumer demands for refunds, which escoms currently hold while offering a 6.5% interest. Additionally, smart meters would eliminate scope for meter manipulation.
In August 2024, the Karnataka Electricity Regulatory Commission (KERC) directed escoms to prioritize infrastructure upgrades over smart meter installation if RDSS funding is not utilized. Officials noted that with a revenue loss of 10% and minimal power theft in urban areas, smart meters would be more feasible for new connections rather than replacing recently installed digital meters in Bescom’s jurisdiction.