Discoms need more than just smart metering

Prepaid smart metering is only a tool, not the solution to the power distribution sector's woes

The Budget presented on February 1 allocated Rs 22,000 crore to the power sector. Stress was laid on the financial position of distribution companies (discoms) and the need for major reforms. The government identified smart metering through prepaid meters as a key focus area, urging all states and Union Territories to replace conventional energy meters with prepaid smart meters in the next three years.

While this will be instrumental in giving consumers freedom to choose retail suppliers when segregation of supply happens, the plan to reduce aggregate technical and commercial (AT&C) losses and make discoms financially sustainable through smart metering is