Thursday, 26 June 2014

World Bank moots prepaid metering for power

If prepaid Sim cards can work out superbly well in India’s telecom sector, then why not introduce prepaid metering in power distribution? Customers, even those at the lower end of the spectrum, may not have a problem paying as long as power supply is better and assured.

An innovative prepaid metering scheme could provide clues to tide over power sector losses mounting to a whopping Rs 1,40,000 crore.

World Bank country director Onno Ruhl on Tuesday told media that as a model to stem losses in the power sector, it has worked. At the launch of the bank report entitled “More power in India: The challenge of distribution”, he said that introduction of prepaid metering in Nigeria has proved to be successful in reducing losses despite being priced higher as consumers are willing to pay more for better and assured power supply.
The Rs 1,40,000 crore accumulated losses calculated till 2011, works out to be $25 billion. They are overwhelmingly concentrated among distribution companies (discoms), bundled utilities, state electricity boards and state power departments.

Citing the example of telecom sector where 90 per cent of mobile phones use prepaid Sim cards, Ruhl suggested the model could be worth trying out in India’s power distribution sector.

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