Energy ministry asks central government offices to prioritize prepaid smart meters

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ANI |
Update:
August 12, 2021 6:44 PM STI

New Delhi [India], Aug. 12 (ANI): The Energy Ministry has issued a notice to all central ministries directing organizations that depend on them to switch to prepaid smart electricity meters.
“The Energy Ministry has issued a notice to all central government ministries to order organizations under their administrative control to guarantee priority switching to prepaid smart meters,” a statement from the Energy Ministry said on Thursday.
This follows a clarification issued by the Ministry of Finance allowing all central ministries and central departments to make advance payments for electricity measured in advance without requiring any bank guarantee, while at the same time ensuring provisions appropriate accountants.
He said prepaid smart meters in all government departments would not only bring DISCOMs back to financial sustainability and promote energy efficiency, but would also serve as a model for similar mechanisms by state departments to promote prepayment. electricity.
The Government of India is committed to providing uninterrupted, reliable and quality power supply to all consumers, for whom an operationally efficient and financially sustainable electricity sector is essential.
DISCOMs are often considered the most important, but weakest, link in the power sector value chain, as their poor financial health at the bottom of the value chain has far-reaching negative impacts upstream. .
In addition to operational inefficiencies that lead to financial losses, increased electricity contributions from government departments, including central and state governments; Local urban and rural organizations; and government boards and corporations due to delayed and inadequate payments for the use of electricity also cause cash flow difficulties in DISCOMs.
The interest charge on the additional working capital made available by DISCOMs to offset deficits creates inflationary pressure on their costs, thus placing more emphasis on their sustainability.
Estimates obtained from the states suggest that unpaid contributions from government departments amount to Rs 48,664 crore for the year 2020-2021, a value that represents a colossal 9% of the annual turnover of the electricity sector. . (ANI)


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