Smart meters aren’t so free: Your power bill may reflect actual cost

Bhopal: Your ‘free' smart meter may soon show up in your power bill. Even as discoms maintain that consumers are not required to pay anything for smart meters, they have built in Rs 513.62 crore as smart meter-related expenses in their Annual Revenue Requirement (ARR) for 2026-27. This amount is part of the Rs 6,044 crore revenue gap for which a 10.19% tariff hike has been sought from the MP Electricity Regulatory Commission (MPERC).So far, the state's three discoms have cumulatively installed around 29 lakh smart meters against a target of 1.34 crore. With installations expected to speed up in 2026-27, costs are projected to rise sharply. Of the total smart meter expenditure, East Discom has pegged its requirement at Rs 164.71 crore, Central Discom at Rs 276.20 crore, and West Discom at Rs 72.71 crore, covering lease charges, upfront payments, and monthly maintenance. Discoms have told the regulator that smart meters alone account for nearly 8.5% of the total revenue gap—meaning close to 1 percentage point of the proposed 10.19% tariff hike could be due to meters that were pitched as "free".Discoms, however, argue that smart meters bring tangible benefits to consumers. They claim the devices provide real-time updates every 15 minutes on electricity consumption and load through mobile apps, helping households track usage and reduce bills through more efficient consumption. Consumers also get daily updates on power consumption, applicable charges, and the balance amount available on the app and online portal.The rollout has nevertheless triggered protests and resistance in several parts of the state, with residents questioning the cost implications. While discoms insist smart meters improve transparency and convenience, the latest tariff filings suggest that consumers may ultimately pay for them through higher electricity bills if the regulator clears the proposed hike. For a typical household consuming 400 units a month, the bill currently stands around Rs 3,250—compared with Rs 3,000 in Rajasthan, Rs 2,200 in Chhattisgarh, and Rs 2,100 in Gujarat. If the proposed hike is approved, the monthly bill could jump by nearly Rs 300, reaching approximately Rs 3,550, or about Rs 3,600 annually.Of the total proposed revenue gap, Rs 1,373 crore is expected to be recovered from domestic consumers and Rs 2,790 crore from agricultural users, with the remainder spread across commercial and industrial segments. While discoms highlight the efficiency and transparency benefits of smart meters, critics argue that the devices, originally promoted as "free," are effectively adding to household expenses. Public hearings and stakeholder feedback will determine the final tariff order.

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