CPI(M) Opposes Electricity Privatization and Smart Meter Policy
The Communist Party of India (Marxist) strongly opposes the government’s decision to implement electricity privatization, the smart meter policy, and the Electricity Bill, 2022. The party demands that the government immediately withdraw this anti-people policy, which will dismantle the state electricity board and hand over electricity distribution to private entities. This will lead to higher electricity costs and increased financial burdens on the general public. If the government does not revoke this decision, the party will mobilize the public and launch a movement against it.
In 2003, the BJP-led Vajpayee government introduced the Electricity Act, 2003, promoting privatization in the electricity sector, including production and distribution. Subsequently, the Modi government introduced the Electricity (Amendment) Bills of 2020 and 2022, accelerating the entry of private companies into the sector and the installation of prepaid smart meters. State governments were pressured to implement these reforms in the name of improving the electricity sector. By December 2023, the Modi government approved the installation of 222.264 million prepaid smart meters, with 98.690 million already installed in various states. Despite opposition, the Modi government continues to promote privatization, benefiting companies like Adani and Ambani through prepaid smart meters.
In Himachal Pradesh, during the COVID period in 2021, the BJP-led Jairam government decided to implement the smart meter scheme under the electricity reforms (RDSS). In 2022, a tripartite agreement was signed between the central government, the state government, and the state electricity board, implementing a 37 billion rupee project in the electricity board, with 18 billion rupees allocated for prepaid smart meters. The central government is to provide only 3.6 billion rupees for this, payable after the meter purchase. The previous government invited tenders, quoting 8,000 to 10,000 rupees per meter, while regular electronic meters cost only 400 to 600 rupees. According to the policy, consumers were to be charged 90 to 125 rupees monthly for prepaid smart meters. The previous BJP government installed 151,740 prepaid smart meters in Shimla and Dharamshala using Smart City funds. The Congress government canceled this tender after coming to power.
The current government has re-tendered for 2.6 million prepaid smart meters, costing 31 billion rupees. The quoted price is around 9,200 rupees per meter, compared to 3,400 rupees in other states, highlighting the exploitation by private companies. Consumers will pay 90 to 125 rupees monthly, and any damage to the smart meter will cost approximately 9,200 rupees. The party demands strict action against officials purchasing these meters at high prices.
The Himachal government is rapidly installing prepaid smart meters, granting licenses to private companies for installation and electricity provision, effectively privatizing the electricity board. This will jeopardize thousands of employees’ futures. Prepaid meters will cut off electricity when the balance runs out, disrupting supply. The high cost and limited lifespan of seven to eight years burden customers. The scheme will lead to automatic privatization of the electricity sector, as private companies will use government-built infrastructure for profit. This will eliminate technical staff jobs, and without the electricity board, pensioners will lose their pensions. Smart meters will result in high electricity bills, depriving poor and middle-class people of electricity. Subsidies for these groups will end, affecting 1.2 million consumers who currently receive 125 units of free electricity. Companies will sell electricity at high rates for profit, introduce different day and night rates, and charge for repair costs. The smart meter scheme will be disastrous for small industries, shopkeepers, flour mill and sawmill operators, and the poor and middle class.
