High distribution losses in Indian distribution network has always been a challenge to stakeholders because of lack of will, delay in use of state-of-the-art technology and poor meterisation despite mandatory provisions in the Electricity Act, 2003. Meterisation has improved over the years but still lot more to do by various distribution licensees.
A revolution came in India with the enactment of the above act, and there was switch over from electro mechanical meters to static meters in compliance to CEA regulation on ‘Installation and Operation of Meters.’ New tampers proof features were provided in the meters.
In order to adopt new technology, prepaid meters were also introduced in certain sections of the society due to their unparallel benefits – but were not installed in a large scale due to lack of confidence by the distribution licensees and resistance to adopt new technology. The success of revenue management through prepaid meters lies in the utility’s ability to collect and manage its revenue.
Benefits of prepaid meters
Benefits of prepaid meter are manifold. Firstly, consumers need not give security for the meter as per section 47 (5) of ‘The Electricity Act, 2003.’ The consumer is not worried from hassles of meter reading, unpaid bills, disconnection about non payment as he /she pays upfront, less possibility of incorrect bills (generally issued in six months), relief from standing in long queues, effective load control and demand side management, 100% collection efficiency, no late payment issues etc.
Impediments in implementation
The impediments in large scale implementation are policy, regulatory framework and operational issues. There are four legal and policy provisions about the prepaid meters, which are briefly discussed hereafter.
(i) Section 47(5) of the Electricity Act, 2003
• Distribution licensee shall not require security.
(ii) National Electricity Policy
• According to 5.4.9 “The SERCs should encourage use of prepaid meters.”
(iii) National Tariff Policy
• Use of prepaid meters can also facilitate this transfer of subsidy to such consumers.
(iv) Clause 20 of Regulations by CEA on Installation and Operation of Meters
Adoption of new technologies. – “The distribution licensee shall make out a plan for introduction and adoption of new technologies such as pre-paid meters, Time of the Day (TOD) meters, automatic remote meter reading system through appropriate communication system with the approval of the appropriate commission or as per the regulations or directions of the appropriate commission or pursuant to the reforms programme of the appropriate government.”
Disconnection notice period (Section 56 of the Electricity Act 2003)
According to section 56 (1) of the above Act, 15 days notice is required before cutting the supply of electricity. Some people apprehended that it is mandatory in case of prepaid meter and how it will be implemented. Legal opinion was sought by CERC in the above matter and the legality of connection was that the contract between the parties is itself for supply of limited units and contract comes to end automatically once the units purchased are exhausted.
The contract of supply of electricity expires by efflux of time related to consumption of the specified units. Thus, section 56 will have no application in the case of prepaid meters.
Regulatory acceptance
In some of the developed countries there are separate regulations for prepaid meters, while in our country it does not exist. Though there are various policies/regulations in force to encourage prepaid meters, still they have not been able to mark their dent in the market. The reasons behind this are:
- lowest cost approach in acceptance of tender.
- Lack of promotional approach by the regulators.
- Lack of consumer awareness.
- Consumer is choice less despite provision in the regulations – as prepaid system is not created.
Features of prepaid meters
A prepaid meter is a static meter with an inbuilt load control device. Prepayment meters are of the following types:
- Keypad meters – Keys are provided on the meter or separate in-house unit to enter the coupon/voucher number that contains various details related with energy to be used
- Smart card meters – When inserted 20 digit number, it stores the various details
- Token or card meters – A token is provided by distribution licensee, which contains the details.
In prepaid meters installed in our country, there are four components (i) main meter, (ii) in house display unit, (iii) vending system for issue of coupon/token and iv) a token carrier for the vending code.
With number coding is given to consumer for the amount of energy he/she intends to use, the token that is specific to a meter contains various codes for total energy, total amount, amount and energy exhausted etc. The display of balance left and the energy consumed are available on the meter as well as on the display unit. Offline (stand alone) systems are being used in India. BIS marked prepaid meters are available in the market. Key pad meters will have key buttons marked with numbers/letters for entering the coupon code. Displays that shall be available on press of keys are stated hereafter.
Display
The meter should display the required parameters as follows:
- Meter serial no.
- LCD test.
- Real date and time.
- Cumulative active energy (forwarded-kWh).
- Credit balance in INR.
- Days left based on the last seven days average consumption.
- Consumption history of last month.
- Present load cost in Rs/ kWh.
- Maximum demand along with date & time for current & last months.
- Instantaneous current (both phase & neutral), voltage, p.f., kW etc.
- Tamper count.
- Any other useful display…
Conclusion
The pepaid meter has a number of advantages over conventional static meters. It is being used by as many as 17 utilities in India. Some of the countries where prepaid meters are predominant are South Africa, UK and Bangladesh.
Prepaid meters can play a major role in reducing AT&C losses – as collection efficiency is 100%. Some states have already introduced prepaid metering in the domestic and commercial sector, and some have proposed to introduce it.
Prepaid metering will facilitate the distribution licensee in enhancing its revenues, saving of energy and manpower. It will give consumer flexibility in frequency and amount of recharge. He/she will adjust his/her consumption according to his/her affordability, a kind of DSM approach. From the point of view of distribution licensees, it will reduce bad debt.
