Residents of Karnataka are losing out on a 15% subsidy from the central government for installing smart meters because of significant outstanding dues owed by government departments to state-owned electricity companies (Escoms). According to the Energy Department, various state government departments owe over Rs 8,500 crore to the Escoms, with Bescom alone needing Rs 4,500 crore.
The central government’s Revamped Distribution Sector Scheme (RDSS) offers energy consumers a subsidy of up to Rs 900, or 15%, for installing smart meters. However, to qualify for this benefit, states must meet a key requirement: government departments must clear all outstanding arrears with the Escoms. Although the scheme is still available, the Union Government will deduct the owed amount from the state’s SGST (State Goods and Services Tax) and direct it to Escoms. This step was introduced to curb the mounting unpaid bills owed to these companies.
Despite the arrears, the Energy Department has rejected this SGST deduction option, which has led to Karnataka’s exclusion from the RDSS. Nevertheless, the state continues to implement the transition to smart meters, as per RDSS guidelines. While installing smart meters is mandatory for new and temporary connections, it remains optional for existing consumers, who can opt for phased installations. A fee of Rs 4,998 will be charged for the meter, with a maintenance cost of Rs 75 per month.
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