Smart metering, smarter execution: need for strong implementation framework

The
Smart Meter National Programme
is a key component of the
Revamped Distribution Sector Scheme
(RDSS) that was launched in 2021 to improve the financial viability and operational efficiency of distribution companies (
DISCOMs
). With a focus on reducing Aggregate Technical and Commercial losses to 12 per cent -15 per cent , the scheme aimed to deploy 25 crore smart meters by financial year 2025-26 to enhance billing efficiency, reduce theft, and improve real-time monitoring across the power distribution network.
Large-scale deployment of smart meters can aid in enhancing the energy efficiency of India's power sector, thus playing an important role in the nation's clean energy transition. Equipped with advanced reading capabilities, smart meters enable real-time monitoring of electricity usage, flag billing anomalies, and provide accurate data for energy planning, thus strengthening demand-side management and prompting load optimisation.
India is witnessing an accelerated deployment of smart meters: from a rather slow uptake till 2023, installations have surged sharply, reaching 2.5 crore by early 2025. But this renewed momentum does not imply that there will be smooth sailing ahead. The pace of smart metering was hampered earlier by factors like high installation costs, absence of adequate infrastructure for replacement of meters, consumer resistance due to perceived billing inaccuracies, and technical issues related to data acquisition and connectivity. Importantly, these issues are in addition to the on-ground execution challenges—especially the absence of regular monitoring measures and efficient maintenance practices—that have marred the past metering initiatives in India.
Experience from past metering programmes
Historically, metering initiatives at various levels of the distribution network in India have faced setbacks due to multiple factors, such as non-compliance with regulatory mandates, poor maintenance of meters, high upfront costs, and inadequate network upgrades. Efforts under various electricity distribution programmes, like the Accelerated Power Development and Reforms Programme (APDRP), its successor, the Restructured APDRP (R-APDRP), the Integrated Power Development Scheme (IPDS), and the Ujwal DISCOM Assurance Yojana (UDAY) aimed to improve metering for streamlining energy accounting and reducing losses. But meagre implementation resulted in inefficiencies and DISCOMs failed to leverage the metering data for loss reduction.
A recent report by the Central Electricity Authority (CEA) on the metering status in the country as of March 2024 tracked the number of installations, but whether this translated into lower losses or improved accountability was not brought out.
However, a field survey on the condition of distribution transformer (DT) meters across selected feeders, conducted by the Center for Study of Science, Technology and Policy (CSTEP) in 2018–19 had found that 19 per cent of the 542 meters surveyed were defective (the main issues related to loose wiring, burnouts, and partial displays, which rendered the meters ineffective). It also found that 40 per cent of DT meters were poorly maintained, had poor physical accessibility (for instance, they were surrounded by vegetation, or were mounted too high), or were compromised due to pest infestations.
The key takeaway from past metering programmes, therefore, would be to give due recognition to continuous monitoring and timely maintenance measures, once meters have been installed. This means that DISCOMs need to invest in regular meter audits.
Learning from consumers surveys on smart metering
In a milieu where metering data lacked consolidation, smart metering was brought in for the crucial role it can play in improving energy efficiency by increasing metering coverage, reducing electricity theft, enabling automated meter reading, and improving power factor management to curb line losses.
There have been some studies and surveys to understand how smart meters are doing on the ground. For instance, a consumer survey in 2022 found that nearly 60 per cent of smart-meter users expressed satisfaction, primarily appreciating the ease of bill payments and improved visibility of electricity consumption. However, the survey also flagged gaps in user awareness—many consumers lacked access to detailed billing breakdowns and were unfamiliar with using mobile applications associated with the meters. These findings highlight the importance of consumer education, user-friendly platforms, and trust-building for the success of smart metering initiatives.
Looking ahead
India's experience so far with metering initiatives underlines the significance of strong groundwork for effective implementation of such programmes. This calls for putting comprehensive monitoring systems and maintenance protocols in place, so that the performance of installed meters can be assessed and problems can be identified and fixed.
In the context of India's ongoing smart-metering initiative, challenges specific to smart meters need to be addressed, besides fixing the fundamental implementation issues mentioned above. DISCOMs must establish mechanisms to support consumers in understanding and using the smart-meter technology effectively. Further, the phased deployment of smart meters must be accompanied by diligent third-party audits to ensure that the systems are operating efficiently. Simultaneously, consumers should be educated on how to use the data generated by smart meters and interpret the bills, while capacity building programmes should be conducted to upskill the DISCOM staff on this technology.
(The authors work in the Energy Policy and Regulations group at the Center for Study of Science, Technology and Policy (CSTEP), a research-based think tank. Mallik EV is a senior associate, and Rishu Garg heads the group.)

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