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The Ministry of Energy (Power Division) is moving ahead with a major effort to improve customer service and operational efficiency by reducing the cost of smart meters and accelerating their nationwide rollout across electricity distribution companies.
According to a spokesperson for the Power Division, metering serves as the primary connection between electricity users and service providers. As part of the Ministry’s plan to declare 2025–26 as the Year of Customer Service Improvement, DISCOs have begun a large-scale digital transformation to modernize their systems. This shift is designed to provide real-time data, ensure transparency, and improve the overall customer experience.
One of the main hurdles to deploying smart meters at scale has been their high price. Nearly 80 percent of the country’s 38 million electricity consumers use single-phase connections, and until recently, a single-phase smart meter cost around Rs20000, far above global averages. Through targeted intervention, open procurement, and continuous monitoring, the Power Division has now brought the cost down to roughly Rs15000.
Major Benefits for Consumers
- Real-time electricity usage tracking
- Improved control over bills and consumption
- Accurate, tamper-resistant meter readings
- Prepaid metering options in the future
This price reduction is expected to generate savings of nearly Rs25 billion every year, based on the replacement of five million meters annually. The lower cost will also make smart meters more affordable for consumers applying for new connections. Officials expect prices to fall further through upcoming international competitive bidding.
Major Benefits for DISCOs
- Remote readings and accurate billing
- Faster resolution of issues and complaints
- Better visibility of distribution networks
- Quick fault detection and restoration
- Enhanced operational safety and management
The initiative is also set to address long-standing issues related to inaccurate or disputed bills. Automated and remote meter readings will minimize human involvement, reduce billing errors, and help rebuild consumer trust. The elimination of manual readings will enhance transparency and streamline the entire metering process.
Once installed, smart meters will give consumers the ability to monitor their electricity usage in real time through mobile apps, helping them manage consumption and control their monthly costs. These meters will also support future prepaid metering features.
