As of July 15, only 20.41 million smart meter units have been installed nationwide, far short of the 20.33 crore units sanctioned under the Revamped Distribution Sector Scheme (RDSS), according to the Ministry of Power.

The CII’s recent survey highlights that the biggest challenges hindering smart meter adoption are outdated utility infrastructure, unreliable connectivity—especially in remote areas—and limited consumer awareness. Notably, 80 per cent of survey participants pointed to consumer engagement as the key obstacle, while most agreed that clearer regulatory guidelines, enhanced billing transparency, effective grievance redressal, and strong cybersecurity measures are essential for the program’s success.

Smart meters offer numerous advantages, including real-time consumer behaviour analytics, prevention of electricity theft, elimination of manual meter reading inefficiencies, and reduced revenue losses for distribution companies.

The survey, conducted over two months among delegates of the 3rd CII Smart Meter Conference, assessed various aspects such as infrastructure readiness, project challenges, consumer awareness, security concerns, and potential improvements.

Suket Singhal, Group CEO of Secure Meters and leader of the CII Taskforce on Smart Metering, emphasized the need to improve consumer engagement: “The electricity prepayment experience should match or surpass that of mobile telephony or DTH services to fulfill its promise to customers.” He added that educating consumers will help sustain their interest and boost acceptance at grassroots levels, which is vital for RDSS’s long-term success.

While 41 per cent of respondents rated the current infrastructure as average, key technical hurdles include interoperability and data management problems due to outdated utility systems (57 per cent), and unreliable connectivity in remote regions (53 per cent). Additionally, 48 per cent cited low awareness and misconceptions about billing and privacy as significant barriers. About 20 per cent noted that complex regulatory frameworks and slow procurement processes also delay implementation.

The report underscores that addressing these challenges requires a comprehensive approach involving robust technical solutions for integration and communication, consumer awareness campaigns to reduce resistance, and streamlined regulatory procedures.

Regarding cybersecurity, 63% of respondents felt the smart metering ecosystem is secure or very secure, reflecting growing confidence in encryption, data protection, and access control protocols. However, 25% expressed concerns about potential data breaches and inconsistent security standards, signaling the need for continued vigilance.

In light of these challenges, an earlier Mint report indicated that the government plans to extend the RDSS scheme by two years beyond March 2026 due to slow progress. The Parliament’s Standing Committee on Energy has also raised concerns over underperformance of RDSS and its impact on distribution companies’ losses. According to their report, Rs 256.64 billion of the Rs 300.65 billion allocated for RDSS during FY22–FY25 has been utilized as of February 10.