TNPDC hesitant to install prepaid meters

08 Nov 2024 CW Team

While the Tamil Nadu Power Distribution Company (TNPDC) remains hesitant to implement prepaid smart meters, many consumers have expressed support for the idea. The Union Power Ministry has recommended TNPDC consider adopting prepaid meters to offer consumers greater flexibility and convenience.

In a recent meeting, Union Minister for Power and Urban Affairs, Manohar Lal, urged TNPDC officials to explore both prepaid and postpaid options, suggesting special benefits for those who opt for prepaid meters. Tamil Nadu’s Electricity Minister, V. Senthil Balaji, highlighted the state's current position on the matter.

TNPDC officials noted that of the 3.5 crore electricity consumers in Tamil Nadu, many benefit from subsidies, including free electricity for 2.75 crore households and 25 lakh farmers. Adopting prepaid meters could complicate subsidy distribution and require a Direct Benefit Transfer (DBT) system.

However, T. Sadagopan, president of the Tamil Nadu Progressive Consumer Centre, argued that a prepaid system would allow consumers to manage payments similarly to DTH or mobile recharges, thus eliminating deposit burdens. He urged TNPDC to implement both prepaid and postpaid options to cater to diverse consumer needs.

S. Nagalsamy, former member of the Tamil Nadu Electricity Regulatory Commission, suggested that the prepaid system could help TNPDC recover payments in advance, which would be beneficial given the utility’s current debt of ₹1.5 lakh crore. He recommended simplifying the tariff system under the new model and offering incentives for prepaid users.

TNPDC has not yet committed to implementing prepaid meters but is planning to introduce postpaid smart meters by 2027. Currently, 1.25 lakh smart meters have been installed in T Nagar, Chennai, as part of a smart city project.

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