News Update

Central Government Offices To Pay In Advance For Energy Use

• ByAyushi Ray     |    August 28, 2021

Central government offices to pay in advance for energy use. The government has allowed central ministries and entities under their control to pay for energy consumption in advance without seeking bank guarantees from power distribution companies (discoms) in a significant step to promote smart pre-paid meters, two officials said. The decision is in sync with the ₹3.05 lakh crore “revamped reforms-based result-linked power distribution sector scheme” that finance minister Nirmala Sitharaman announced in the Budget on February 1, they said requesting anonymity. This assumes significance given that outstanding dues of government departments accounted for ₹48,664 crore at the end of the 2020-21 financial year. Advance payment of electricity bills is central to smart pre-paid meters, a key component of power distribution reforms, one official said.

India is launching the world’s largest electricity smart metering programme to replace 250 million conventional metres one of the measures to reduce the aggregate technical and commercial (AT&C) losses from 21.83% in 2019-20 to 12-15%, and close the gap between the average cost of supply and average revenue per unit from 28 paise in 2019-20 to zero by 2024-25, a second official said. As the first step, the Union power ministry earlier issued an advisory to all central government ministries to direct organisations under their administrative control to switch to prepaid smart meters. Union power minister RK Singh told the Rajya Sabha on August 3 that it will provide financial support to eligible discoms “for upgradation of the Distribution Infrastructure and Smart Metering Systems for the network as well as prepaid smart metering systems” for consumers as part of the ₹3.05 lakh crore scheme.

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