New Delhi, March 12 A parliamentary panel has urged the power ministry to take urgent steps to accelerate the installation of smart meters in a structured and time-bound manner.
The Eleventh Report of the Committee on 'Demands for Grants (2026-27) of the Ministry of Power' was presented in Parliament on Thursday.
The report stated that the pace of smart meter installation across the country has been significantly lower than the target, and the ministry should urgently accelerate the rollout of smart meters in a structured and time-bound manner, with clearly defined milestones for states and utilities.
It noted that the government had set a target of installing 25 crore smart meters by March 2025, but only 5.83 crore meters have been installed by February 15, 2026.
The committee observed that while the installation rate has increased to about 1.35 lakh per day, it may still be insufficient to close the gap between the target and actual achievements by March 2028.
Furthermore, it noted that consumers across states are reporting frequent complaints about billing inaccuracies, data migration errors, concerns about data privacy, and frequent replacement of consumer meters.
The committee emphasized that these issues could erode consumer confidence and undermine the objectives of smart metering as a tool for reform.
The panel suggested that robust mechanisms should be put in place to address consumer concerns, and stringent testing and certification of smart meters should be ensured before installation.
Moreover, it suggested that a Quality Monitoring Mechanism should be established to hold Advanced Metering Infrastructure Service Providers and discoms accountable.
It also recommended that discoms should establish transparent and responsive consumer grievance mechanisms, including time-bound resolution of billing disputes and mandatory installation of check meters in case of complaints.
It also recommended comprehensive safeguards to ensure consumer data privacy and cybersecurity of the smart metering infrastructure, including clear guidelines on data ownership, access, storage, and grievance redressal.
The committee noted that the Revamped Distribution Sector Scheme (RDSS) aims to reduce AT&C losses to 12-15 per cent and eliminate the gap between Average Cost of Supply and Average Revenue Realized (ACS-ARR).
It observed that while AT&C losses and the ACS-ARR gap have shown positive trends, losses have increased in Himachal Pradesh, Mizoram, Nagaland, Punjab, and Telangana from 2020-21 to 2024-25.
Discoms in 16 states/UTs have failed to meet their AT&C loss targets for 2024-25, and the ACS-ARR gap has widened for 11 discoms in 8 states during the same period.
It noted that there have been improvements in AT&C losses and the ACS-ARR gap at the national level, but these improvements are uneven across states and utilities, indicating that structural inefficiencies and inadequate implementation of reforms persist in several states despite the availability of financial support under the RDSS.
Furthermore, it noted that billing and collection efficiencies at the pan-India level stand at 87.60 per cent and 97 per cent, respectively, which will continue to negatively impact revenue realization and reflect deficiencies in metering, billing systems, and energy accounting.
Believing that RDSS should transform the distribution sector, not just provide temporary improvements, it recommended that the ministry should adopt state-specific strategies to address persistently high loss areas, with a focus on states and discoms that have shown deterioration or underperformance, to ensure improved governance and accountability of distribution utilities in the long run.
It suggested third-party quality assessment of works executed under the RDSS.
It recommended that the ministry, in coordination with states and discoms, should formulate and enforce a comprehensive National Electrical Safety and Cable Management Framework to address the issue of unsafe overhead hanging wires.
In addition, it suggested that complaint redressal mechanisms should also be strengthened to enable citizens to report hazardous wiring conditions, with time-bound action by the concerned authorities.
Note that AI is highly energy-intensive, it suggested that the ministry and the Central Electricity Authority should review the National Electricity Policy and National Electricity Plan to suitably incorporate the issues related to the increasing use of Artificial Intelligence in the Power Sector, rapid growth of large-scale data centers, and their increasing demand on the National Grid.
It also suggested that annual capacity addition targets should be finalized well in advance of the financial year, based on realistic assessment of actual project progress.
It also suggested that the ministry should strengthen its expenditure forecasting assessment at the Budgetary Estimates stage to minimize its dependence on supplementary grants and internal re-appropriation.
