Millions in developing countries remain disconnected from the electricity grid. And those with access often grapple with frequent outages due to myriad operational, payment, and delivery challenges. The state of Jammu & Kashmir has the highest rate of Aggregate Technical & Commercial (AT&C) losses across India, at around 60%, attributed to the significant levels of power theft in the state. Smart Metering, and its features of prepaid billing and remote disconnections, has been identified as one of the solutions to reduce power theft and decrease AT&C losses. As part of its effort to improve the quality of power supply and revenue collection, the Jammu Power Distribution Corporation Limited (JPDCL) is installing pre-paid smart meters for its domestic and non-domestic consumers. So, what can break the cycle of low payments and low-quality electricity supply?
Trying to find answers for enhancing reliable electricity access, researchers at the Energy Policy Institute at the University of Chicago along with their colleagues from partner organizations are carrying out a research experiment in Jammu and Kashmir, India. This project represents a progression from our previous efforts in Haryana, where EPIC has been conducting a project to determine the optimal balance between the costs associated with smart meters and the resultant efficiency benefits.
Researchers Anant Sudarshan, Michael Greenstone, Nicholas Ryan, and Robin Burgess are evaluating the transformative potential of smart meters. In collaboration with the state of Jammu and Kashmir, the project is trying to determine whether implementing smart metering, particularly with pre-paid meters, enhances revenue collection while reducing losses. Additionally, they seek to understand how consumer payment behaviours and instances of power theft influence reliability. Moreover, they are exploring the impact of technological advancements, particularly in rural areas, on grid connectivity.
Talking about the project, Associate Professor of Economics, University of Warwick, and one of the principal investigators in the project, Dr. Anant Sudarshan, says, “In Jammu and Kashmir – electricity grid connectivity is a challenge, and millions face the harsh reality of unreliable power supply. By partnering with the government utility, we are trying to delve into the evaluation of various features of smart meters. We are trying to better understand and evaluate how remote disconnections offer the possibility of efficient management, online monitoring promises real-time insights, and pre-paid metering introduces a new dimension of consumer control.”
The deployment of smart meters in a way represents a pivotal technological solution addressing the challenge of non-payment in electricity distribution. Experts believe that enabling utilities to recover costs efficiently, propels the sector towards a more functional market. This innovative approach not only enhances revenue collection but also fosters improvements in service quality, energy access, and curbing theft, offering invaluable insights for utilities worldwide grappling with similar issues.
Dr Sudarshan adds, “Smart meters, with their ability to reduce arrears, particularly those amassed by large consumers, hold the promise of improving the overall supply for all. Better fault identification and enhanced monitoring of supply quality pave the way for a virtuous cycle—better quality leads to more reliable payments and vice versa.”
As India undertakes one of the largest rollouts of new metering technology in the developing world, with a target of installing 250 million new meters by this year, this ongoing research experiment seeks to provide evidence-backed insights into optimizing the use of these innovative devices.