Watts up!? Amped up smart-metre bills spark outrage among Gujarat consumers

The Gujarat government’s ambitious plan to install smart electricity metres has hit a roadblock, with only a fraction of the intended devices installed so far. According to data presented in Parliament by the Union Ministry of Power, just 21 lakh smart metres have been installed in the state as of 15 July 2025, against a target of 1.67 crore under the Revamped Distribution Sector Scheme (RDSS).

The rollout began in 2017, with regional electricity distribution companies—PGVCL, UGVCL, DGVCL, and MGVCL—focusing on Category-1 consumers who use over 500 units of electricity. While a target of 8.79 lakh metres was set in 2019, only 26,000 were installed at that time.

Public scepticism over rising electricity bills

Smart metres, which allow consumers to track electricity usage in real-time through a mobile application, have faced stiff resistance. A large number of consumers allege that their electricity bills have increased significantly after switching to smart metres.

Despite multiple schemes and incentives from power companies, public trust in the technology remains low. The opposition is widespread enough that even after years of campaigning, over 85% of the targeted smart metres remain uninstalled.

Observers say the energy department and power companies have failed to effectively communicate the benefits of smart metres or address concerns, allowing public mistrust and misconceptions to grow unchecked.

Smart for some, not for all? BJP leaders stick to old metres

While the government claims smart metres are beneficial to consumers, most BJP ministers, MLAs, and MPs have not installed them in their residences. This has added to public resentment, with critics pointing to the apparent double standards.

A senior source in the energy sector remarked that this reluctance sends a “contradictory message” to the public, particularly as complaints about inflated bills mount.

Consumers' deposits with power companies cross ₹11,980 crore

The pushback against smart metres comes alongside scrutiny of electricity companies’ financial practices. According to industry sources, Gujarat’s power companies hold consumer security deposits totalling ₹11,980 crore.

Here’s a breakdown of deposits by company:

For residential connections, deposits are typically around ₹3,000 per kilowatt. High-tension connections are billed at 1.5 times the monthly bill amount.

Power companies offer around 6% annual interest on these deposits, but this rate is lower than current bank interest rates, prompting further criticism. Activists and consumer rights groups allege that electricity companies are profiting twice—once from deposits and again through high tariffs.

No clear roadmap forward

As Gujarat pushes for digitisation and smarter infrastructure, the failure to build public trust around smart metres may hinder broader reforms in the energy sector. Without transparent communication, consumer engagement, and government accountability, the smart metre initiative risks remaining a costly and incomplete experiment.