India's smart meter plan hit by infrastructure, awareness hurdles, says CII survey

New Delhi: India's adoption of smart meters for electricity consumption has been sluggish, prompting calls for clearer rules and better consumer engagement, a survey by the Confederation of Indian Industries (CII) shows.

As on 15 July, only 2.41 crore units had been installed across the country of the 20.33 crore sanctioned under the Revamped Distribution Sector Scheme (RDSS), according to power ministry data.

The CII's recent survey shows outdated utility infrastructure, unreliable connectivity, and low consumer awareness were the biggest hurdles to smart metering. While 80% of respondents cited consumer engagement as the key barrier, most also agreed that clear regulatory directives, better billing transparency, grievance redressal, and robust cybersecurity will be critical for success.

Smart meters provide real-time analytics on consumer behaviour and enable plugging of leakages and theft. They also do away with the inefficiencies in manual data collection, and help reduce revenue losses for distribution companies.

The CII survey's findings are based on the responses received from a poll conducted over the last two months among the participants of 3rd CII Smart Meter Conference. The poll explores various aspects of smart meter projects, infrastructure, challenges, consumer awareness, security, and potential improvements.

Commenting on the survey outcomes , Suket Singhal, group chief executive officer, Secure Meters, who also led CII Taskforce on Smart Metering in FY25, said: “The most significant outcome of this poll was the need to improve consumer engagement. By ensuring that the experience of prepayment in electricity equals or is better than mobile telephony or DTH (direct to home service), we as an industry will be able to deliver on its promise to customers.”

Once consumers are adequately trained, they will remain engaged, and at the level of grassroots politics, Revamped Distribution Sector Scheme (RDSS) will become acceptable, Singhal added.

Most people who participated in the survey said the current state of smart metering infrastructure was average, 41% respondents had a positive view. The key challenges identified include outdated utility infrastructure leading to interoperability and data management issues, unreliable connectivity in remote areas, regulatory hurdles, slow and cumbersome procurement process, and low levels of awareness about billing and privacy concerns, necessitating focused outreach and awareness efforts.

“What consumers are asking for is a better experience, which can be provided by ensuring everyone gets to pay what they can, when they can,” Singhal said.

The need to fully de-risk cyber vulnerabilities was identified as a key pillar to providing confidence to stakeholders. All systems must be designed with security in mind and must have adequate processes to ensure that security and data privacy remain robust, he added.

Nearly 57% respondents noted that the most common challenge faced in implementing smart meters was the difficulty in aligning them with outdated utility infrastructure, leading to interoperability and data management issues. The second biggest challenge was unreliable connectivity, especially in remote areas which hampers real-time data transmission, affecting overall system efficiency, said 53% of the respondents.

About 48% of them noted a significant barrier driven by low awareness, misconceptions about billing, and privacy concerns. Complex and fragmented regulatory frameworks that led to delays in project approvals and implementation and slow cumbersome procurement processes, were seen as a concern by 20% of the respondents.

The analysis revealed that the primary challenges to smart metering revolved around technical integration, data communication, and consumer acceptance. The frequency of each challenge indicates its relative importance and prevalence, said the CII report.

Integration with legacy systems and data communication issues are the most pressing concerns, suggesting a need for better planning and infrastructure. Addressing these challenges requires a multi-faceted approach, including robust technical solutions for integration and communication, public awareness campaigns to address consumer resistance, and streamlined regulatory processes to avoid delays, it said.

About 80% of respondents believe that consumer awareness is a significant barrier to smart meter adoption, while 63% consider the system either secure or very secure, indicating a generally positive perception of cybersecurity readiness. The report noted that this optimism suggests growing confidence in the technological safeguards in place, such as encryption protocols, secure data handling practices, and access controls.

Around 25% rated the ecosystem as ‘not secure’, pointing to ongoing concerns about data breaches, unauthorized access, or lack of comprehensive cyber standards. These concerns may be rooted in inconsistent implementation across utilities or limited visibility into backend systems, the report said.

An earlier report by Mint said the government was set to extend the RDSS scheme by two years beyond March 2026, as the progress had been tardy.

Earlier this year, Parliament's standing committee on energy had raised concern over the under-achievement of the RDSS scheme, and the resultant increase in losses suffered by power distribution companies.

In its report on demands for grants for the power ministry, the panel said of the total of ₹30,065 crore allocated for RDSS during the first four years of the scheme (FY22 to FY25), about ₹25,664 crore had been utilized as of 10 February.