Challenges and opportunities of smart meter installations in Kashmir

In May this year, the Power Development Department (PDD) stated that 100% of smart meter coverage would be done across the Kashmir valley in the next two years. PDD Chief Engineer Javed Yousuf Dar claimed that conventional meters were inconvenient as they necessitated manual readings, suggesting that smart meters would eliminate the concern of involving significant manpower. 

However, the rollout of these smart meters was met with widespread protests across the valley; the public expressed their disapproval towards the new system citing concerns over inflated bills and demanding a return of flat rates. Despite these demonstrations, the Kashmir Power Development Corporation (KPDCL) Ltd refused to halt the installation process and stated that there was no alternative to this.

Further, in June, it was announced that as per the new pre-paid system, consumers will have to recharge their smart meters with credit prior to using electricity. This is contrary to the earlier practice of paying tariffs at the end of the month. Following this, over 57,000 smart meter users were informed by KPDCL to switch their smart meters from a post-paid to a pre-paid mode in addition to clearing outstanding bills in order to continue receiving electricity.

Smart meters as energy conservation tools

In spite of the outrage against this recent reform, nothing discounts the fact that smart meters have multiple benefits in terms of sustainable energy development; they reduce greenhouse gas emissions and improve energy efficiency by making consumers aware of the extent of their energy usage. In doing so, they link two types of information- the amount of energy consumption as well as the elapsed period of consumption. Smart meters are also site-specific, enabling companies to charge different prices for electricity usage. So in essence, this feedback system acts as a motivator or a reminder to users, for judicious consumption. 

At the same time, there are other tools that can promote energy conservation. These include awareness, relevant tax, pricing, subsidy policies, administrative policies, and efficient devices. However, such changes are not sufficient, by themselves, in ensuring an improvement in conservation- unless supplicated by behavioral shifts. As is apparent in the valley through hefty household bills, habits of judicious consumption are integral to inculcating in people, as I shall illustrate further.

Balancing energy conservation and public acceptance

Smart meters involve a type of real-time dynamic pricing, whereby retail electricity prices are permitted to vary persistently as per supply and demand conditions. So, this real-time dynamic pricing, known as the Time of Day (TOD) tariff in J&K, has the potential to lead to rapid increases in price based on changes in market conditions. In certain cases, there may be a prior notice given whereby consumers would be informed that tariffs may increase during a particular period of time on a particular day as a result of high demand. In J&K, the price of electricity is cheaper during the day as this is sourced through solar power, whereas that in the evening is sourced through hydroelectric, thermal, and gas-fired power. This system has the capability of conserving money for consumers who are able to shift their electricity consumption to periods where demand and consequently, prices are low. So, consumers would have to put in efforts to ensure that their energy spending is during solar hours, or at least a majority of it.

However, the people who fail to respond adequately to these variations by shifting their energy consumption risk incurring exceedingly high electricity bills. An important consideration to bear in mind is that the winters in Kashmir, which are intrinsically harsh in nature, increase the demand for electricity in terms of heating appliances such as heaters and radiators. So, people tend to use heating appliances- and thereby electricity- much more when compared to other times of the year in order to stay warm. And, it is a reasonable argument to say that residents cannot limit the usage of heating appliances merely to solar hours due to the climatic conditions.

Moreover, while a resident who earns a sufficient income may be able to meet these financial requirements, there is a certain segment of the population that cannot afford to pay a hefty amount under any circumstance. Jammu & Kashmir Policy Institute spoke with Javed Yousuf Dar with regard to economic incentives available to the poor. Dar states that electricity rates in J&K are one of the cheapest in India. A similar claim was made by LG Manoj Sinha in early August this year. Additionally, Dar mentioned the below poverty line rates, which are Rs 1.25 for up to 30 units per month. However, the cost incurred by BPL households for electricity consumed beyond this prescribed limit would be charged at Rs 2 up to 200 units per month, which is the same as ordinary residents. 

An important thought to bear in mind is that a sizable factory or a large office can foreplan to close operations early when electricity prices become high. Households, on the other hand, cannot do that. Suppose an individual uses an appliance and leaves it running prior to leaving their house; upon their arrival, they find that they consumed electricity during peak hours and there is no step they can take to undo this. The only means through which they can manage the electricity consumption would be to program their smart meters such that they shut down appliances when required. 

The challenge of gathering public willingness

Based on data from the 2009-10 Irish Commission for Energy Regulation Smart Metering Electricity Customer Behaviour Trials (involving 4232 to 3423 pre-trial and post-trial households and businesses) it was found that smart electricity systems might be irrelevant for most consumers. This is because the costs incurred towards the establishment and upkeep of these systems in conserving electricity may seem to be higher to consumers rather than not paying attention to their usage at all. In the case of Kashmir, this upkeep involves recharging credit on the smart meters as well as ensuring that energy usage is kept to a minimum ideally during non-peak hours.

Because smart meter installations rely heavily on the willingness of residents to pay and especially, on understanding the reasons that would bring about such willingness. Hence, the economic benefits of such installation need to be clear to the general public. This is challenging in the case of Kashmir as the public already has a perception that the smart meters produce exorbitant bills. But, a solution to this would be to raise awareness on how to ensure minimal spending along with information on peak hours during which consumers can reduce their consumption. PDD Chief Engineer Dar stated that KPDCL conducts awareness programmes routinely to educate people about smart meters and clear misconceptions, which is an apt step in the direction of gaining acceptance amongst the public.

At the same time, another reason for households’ resistance to smart metering could be a bias toward the status quo. The status quo, here, refers to a preference for doing that which requires no effort, significantly contributing to its appeal. If such household inertia is strong, then even economic incentives to promote the adoption of energy conservation methods may prove to be insufficient. This is highly relevant to the valley since customers now have to recharge their credit every month and make extra efforts to consume less electricity than earlier- or at least ensure that they consume less during peak hours. This state of discomfort has the potential to cause substantial resistance, even in the long run- unless the authorities introduce economic incentives or customers adapt to these new changes. 

Not to mention that when resistance among people grew, the KPDCL snapped electricity in the regions of protest such as Habba Kadal. The authorities claimed that this was done to prevent any ‘law and order issues’; this response, however, is ambiguous to the author since one can reasonably conclude that cutting the supply of electricity in areas enraged by electricity reforms only contributes to their existing resentment. This view is also echoed by residents who perceived this action as one of exerting pressure on them to accept the smart meters. 

Conclusion

Smart meters, in theory, are an excellent energy-conserving device and should, in principle, contribute to large-scale energy-saving in Jammu & Kashmir. But, there are certain valid concerns that accompany its installation and moreover, appropriateness in the valley at the moment. The introduction of smart metering was practically inevitable, as it was introduced by a government order and its roll-out was already slower than anticipated. However, the public’s unfavorable perception of this new move shows resistance and disapproval. 

For this reason, it seems like smart metering may be a move that is beneficial for the public- at least in the long run- but has not been communicated to them effectively. Presently, people are outraged at the high cost of bills that the smart meters produce, even if this is seemingly a result of their own usage. So in order for this program to be successful, people must be informed about the benefits of smart meters in comparison to conventional meters. And, consumption habits must be such that there is minimum electricity usage in households to ensure that the motive behind introducing smart meters is truly realized in Jammu & Kashmir.