October , 2023
The RDSS scheme and the controversy surrounding smart meters
23:53 pm

Saptarshi Deb

India, with its burgeoning population and ever-increasing energy demands, faces the daunting task of modernising its energy infrastructure. The Restructured Distribution System Strengthening (RDSS) scheme has emerged as an important development in this endeavour. At the heart of this transformation are smart meters, a technology designed to revolutionise the way electricity is managed and consumed. However, with innovation comes scrutiny, and smart meters have not been exempt from controversy.

The RDSS Scheme: Modernizing India’s Energy Landscape

The RDSS scheme represents a critical component of India’s ambitious plan to overhaul its power distribution system. Its core objective is to enhance the efficiency and reliability of electricity distribution, which is still mostly controlled by government agencies, across the country. The scheme is underpinned by the deployment of smart meters, which are equipped with cutting-edge technology, enabling two-way communication between consumers and utility providers.

Benefits of the RDSS Scheme and Smart Meters

Smart meters provide a game-changing advantage by offering real-time data on electricity consumption. Unlike conventional meters that necessitate manual reading, smart meters automatically transmit consumption information to utility companies. This empowers consumers to monitor their usage patterns and make informed decisions regarding energy consumption. With smart meters, billing accuracy reaches new heights. Automated readings eliminate human errors associated with manual meter reading, ensuring consumers are billed based on actual consumption. This, in turn, reduces disputes and discrepancies. Access to detailed consumption data equips consumers with the ability to identify energy-intensive appliances and behaviours, enabling them to adjust and reduce energy wastage. Lower energy bills and a reduced carbon footprint become achievable goals. Utility providers can remotely disconnect and reconnect power supply, eliminating the need for physical visits by technicians. This feature enhances operational efficiency and reduces downtime during disconnections or reconnections. Additionally, smart meters are formidable tools in the fight against electricity theft. Their ability to detect and report irregularities in electricity consumption makes it difficult for consumers to engage in unauthorised activities such as meter tampering or theft, thereby increasing revenue collection for utilities. Smart meters facilitate the seamless integration of renewable energy sources like solar panels and wind turbines. Consumers can monitor their energy generation and export surplus electricity to the grid, thus encouraging the adoption of clean energy. Moreover, utilities can introduce dynamic pricing models with the help of smart meters. This allows consumers to benefit from lower rates during off-peak hours, encouraging energy consumption during non-peak periods and reducing strain on the grid.

Controversies Surrounding Smart Meters

However, the deployment of smart meters in various Indian states has not been without its fair share of controversies. Several key issues have arisen. The granular data collected by smart meters about consumers’ electricity usage has raised legitimate privacy concerns. Critics argue that this data could be misused or compromised, potentially revealing sensitive information about households. The installation of smart meters demands a substantial upfront investment from utilities. Some critics fear that these costs may eventually be passed on to consumers, leading to higher electricity bills. While scientific studies have not conclusively proven adverse health effects, there have been concerns about the electromagnetic radiation emitted by smart meters. These concerns, though unverified, continue to persist. In certain states, the installation of smart meters has encountered technical challenges, including compatibility issues with existing infrastructure and connectivity problems. These challenges have hindered the seamless rollout of the technology. In some regions, consumers have vehemently resisted the installation of smart meters, citing mistrust of utility providers and concerns about data security and privacy. 

Apart from the technological uplift that these smart meters are supposed to provide, there are some real consumer-end concerns that need to be addressed before this installation process is initiated widely. The real time data on consumer usage comes with the issue of privacy – with user data being liable to be viewed by authorities. Not only that, a detailed record of usage patterns might lead to dynamic pricing of electricity, with utility providers hiking electricity rates during high usage periods in order to maximise their profit. The initial investment of around `12000 will be adjusted through subsequent electricity bills – shifting the cost of installation onto the consumers, which is unfair. Thirdly, the smart meters enable instant and remotely enabled disconnection. Cool as it may sound, its manifestations can create havoc. Consumers may use up their meter money due to some unforeseen usage and may not be able to reimburse immediately. Under this system, the electricity connection will automatically switch off one the meter money runs out – very much like our pre-paid mobile connections which simply stop working once we have used up our data money. Under the present system, disconnection notices are sent, giving the consumer some time to pay the outstanding amount. However, if this system is enabled, disconnection notices will be a thing of the past and instant disconnection will be promoted will will lead to various complications and consumer-end problems.

Recent Controversies in Indian States

Various Indian states have found themselves embroiled in controversies related to the installation of smart meters. Kerala faced significant pushback from consumer groups when it attempted to introduce smart meters. The controversy primarily revolved around concerns related to data privacy and potential health risks from the radiation emitted by the meters. As a result, the state government suspended the installation process. The Delhi Electricity Regulatory Commission (DERC) encountered resistance when it proposed mandatory smart meter installations for consumers with loads exceeding 10 kW. Consumers argued that the cost of smart meters would eventually be passed on to them, leading to higher bills. DERC later revised its decision to make the installation voluntary. Haryana reported technical glitches and communication failures with smart meters. Consumers complained of incorrect billing and difficulty accessing real-time data. In response, the state government-initiated efforts to address these issues.


The RDSS scheme, with its deployment of smart meters, stands as a beacon of hope for modernizing India’s power distribution system and promoting efficient energy management. The benefits of smart meters, such as real-time data, improved billing accuracy, and efficient energy management, are undeniable and pivotal for India’s energy future.

However, the controversies surrounding smart meters, including privacy concerns, health-related fears, technical challenges, and consumer resistance, cannot be dismissed lightly. To harness the full potential of smart meters and navigate the ongoing transformation, stakeholders—utilities, government authorities, and consumers—must engage in transparent and effective communication. Trust-building measures, reassurances regarding data security and health risks, and a streamlined installation process are imperative.

In the end, smart meters possess the potential to revolutionize India’s energy landscape, reduce energy wastage, and empower consumers to make informed choices about their electricity usage. Addressing the challenges and building trust in this transformative technology is the key to realizing these benefits and ensuring a brighter, more energy-efficient future for India. The government should be mindful of consumer sentiments as well and evaluate the social impacts of this transformative change in India’s discom sector seems to be the precursor of a push towards significant privatisation in this segment. 

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