Chennai, July 21 The Tamil Nadu government's much-publicised poll promise to introduce monthly electricity billing may face significant delays, as the Tamil Nadu Power Distribution Corporation Ltd (TNPDCL) has opted to roll out the ambitious smart metering programme in two phases instead of the originally planned single-stage implementation, officials said on Monday.
According to TNPDCL officials, the revised phased rollout will begin with the installation of 1.44 crore smart meters in the first phase.
This will cover all low-tension (LT) three-phase consumers, single-phase consumers with bimonthly consumption exceeding 400 units, high-tension (HT) consumers, and distribution transformer meters.
The second phase, which will cover the remaining 1.60 crore consumers, will be launched only after the successful completion of the first phase.
Originally, the smart metering project envisaged the installation of 3.04 crore meters in one go at a projected cost of Rs 19,235 crore.
However, under the revised plan, the first phase will include 93.59 lakh single-phase meters and 45.57 lakh three-phase meters for LT consumers.
The second phase will add another 1.57 crore single-phase meters and 3.90 lakh three-phase meters.
The decision to stagger the implementation is aimed at reducing resistance from employee unions, particularly over concerns about job losses for meter readers.
Since manual readings will continue for non-smart meters during the transition period, the move to monthly billing is expected to be delayed.
S. Kannan, treasurer of the Central Organisation of Tamil Nadu Electricity Employees, welcomed the two-phase approach.
"It is a misconception that monthly billing will reduce electricity costs. While the slabs will be halved, the tariffs will effectively remain unchanged. Free electricity will also be halved from 100 units bimonthly to 50 units monthly," he noted, adding that many political leaders demanding monthly billing were unaware of the practical implications of the tariff system.
Meanwhile, Tamil Nadu Generation and Distribution Corporation (TANGEDCO) re-floated tenders in March under six packages covering all 12 distribution regions.
This marks the third attempt, after previous bids were cancelled due to high prices and procedural setbacks.
In one instance, a power entity had quoted an unusually high price for one of the packages, leading to its rejection.
The smart metering project is being carried out under the Union government's Revamped Distribution Sector Scheme and will follow a Design, Build, Finance, Own, Operate, and Transfer (DBFOOT) model.
As per the agreement, selected Advanced Metering Infrastructure service providers will install meters within 27 months of contract signing and maintain them for 93 months.
TANGEDCO will reimburse the cost on a per-meter, per-month rental basis over a 10-year period.
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