A major controversy has arisen, with the Congress accusing the BEST Undertaking of awarding a Rs 1,300 Cr contract to Adani Electric for the installation of 10.50 smart electric meters for electricity consumers. According to Senior Congress leader Ravi Raja, these meters will function as prepaid instruments, similar to prepaid mobile phones. Consumers will be required to pre-load the meters with money before using electricity. Raja added that this move is seen as a favor to the Adani group, which is perceived to have support from the BJP.
Adani Electricity has not issued an official response to Raja's allegation but informally stated that there is nothing illegal about the contract. An Adani official mentioned that the BEST Undertaking had floated a tender for the installation of 10.50 lakh smart meters, following the central government's policy. Adani's bid was the lowest, leading to the contract being awarded to them. The decision of whether the payment for electric consumption should be prepaid or postpaid is at the discretion of the BEST management, and Adani has no role in this matter, the official clarified.
According to Raja, Adani Electric has been tasked with installing 10.5 lakh smart meters in three years, and they will also handle maintenance. He expressed concern about the financial burden this could place on consumers, particularly the middle class and lower-income groups. Raja emphasized that the Maharashtra Electricity Regulatory Commission (MERC) should consult citizens and gather suggestions before introducing prepaid billing. Each smart meter will cost Rs. 9,500, with Rs. 1,300 provided by the Centre, and the remaining cost borne by BEST. Raja questioned how BEST will raise the funds needed to pay for the meters, considering its current financial situation.
On the other hand, the Adani Electric official mentioned that the Centre launched the Revamped Distribution Sector Scheme (RDSS) in 2021, aiming to reduce Aggregate Technical & Commercial losses PAN India to 12-15%. As part of this scheme, about 25 crore smart meters are set to be installed across India, which will benefit consumers by providing accurate billing, real-time monitoring, energy management, and faster problem resolution. The official pointed out that prepaid metering has several advantages, particularly for lower-income groups, and cited the success of prepaid billing in the telecom sector.
The list of players who have already been awarded contracts includes Adani Transmission Limited, Anvil Cables, Apraava, BCITS, EESL, IPCL, Genus, GMR Infra, HPL, HPMS, India Power Corporation Limited, IntelliSmart, Monte Carlo, Secure Meters Limited, Shirdi Sai, Tata Power, and Techno Electric & Engineering Co. Ltd.
According to the official, prepaid metering offers various benefits, particularly for lower-income groups. He emphasised that the concept of prepaid billing has already been widely adopted by Indians in the telecom sector, where over 90% of consumers in India opt for prepaid billing.
Consumers can monitor their energy usage and recharge as needed, avoiding surprises at the end of the billing cycle. Real-time information on energy consumption encourages consumers to be more mindful of their electricity usage, leading to reduced energy consumption and improved energy efficiency. Additionally, prepaid meters eliminate the risk of sudden disconnection due to unpaid bills, as consumers pay in advance.
