MoP urged Central Govt Offices switching to prepaid smart meters on a priority basis

The Power Ministry has advised all central ministries of the government to ensure that organizations under their control switch over to prepaid smart meters on a priority basis.

Switching to pre-paid smart meters on a priority basis has been recommended by the power ministry for all central ministries and departments.

A power ministry statement said that it has advised all central ministries of the government to ensure that organizations under their control switch over to prepaid smart meters on a priority basis. In addition, the ministries are also expected to issue all enabling orders related to this.

The Central Ministries and Departments are now able to make pre-paid metered electricity payments without having to offer bank guarantees as outlined in a clarification issued by the Ministry of Finance. It also specified that proper accounting arrangements were to be ensured at the same time.

Incorporating prepaid smart meters into all government departments will not only go a long way towards restoring DISCOMs to a position of financial sustainability but will also strengthen the governmental commitment to the cause. Moreover, it will serve as a template for states to adopt similar mechanisms for prepayment of electricity dues by their own departments, assisting in promoting energy efficiency, according to the statement.

According to the estimates, the outstanding dues from the state government departments are in tune of INR 48,664 crore at the end of 2020-21, representing 9 per cent of the annual turnover of the power sector.

Besides providing uninterrupted, reliable and quality access to energy to all Indians, the Government of India is also committed to ensuring that the energy sector is financially and operationally sustainable.

Thus, for transforming DISCOMs operational efficiency and financial sustainability, the Government of India has approved the Revamped Distribution Sector Scheme – A Reforms-Based and Results-Linked Scheme.

Under this scheme, prepaid smart meters have been made a priority in all government departments, including both central and state governments, as well as local and state governments, as well as government boards and corporations, in order to ensure that government departments properly budget and pay for electricity services on an ongoing basis.

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