The case for a smart switch

A great reform opportunity presents itself in the beleaguered power distribution sector – en masse transition from traditional to smart meters.

Earlier reform footprints, together with availability of resources, a renewed thrust to ‘aatmanirbhar’ manufacturing, and the need to pull power distribution companies (discoms) out of the current crisis, make the ground ripe for such a switchover.

With the Covid-19 pandemic and extended lockdowns diminishing demand and collections, and loss-making discoms slipping deeper in the red, CRISIL Research expects power demand to contract 3-5% on-year this fiscal compared with a compound annual growth rate (CAGR) of 3.8% between fiscals 2015 and 2020.

A simple and effective way to firefight this dismal situation is to ramp up collection efficiency quickly – through large-scale adoption of smart metering solutions.