CSERC Flags Management Lapse In Handling Of Old Meters During Smart Meter Rollout In Chhattisgarh

The Chhattisgarh State Electricity Regulatory Commission (CSERC) has concluded a suo-motu proceeding on the handling of old electricity meters replaced during the rollout of prepaid smart meters in the state. The case was taken up after media reports in December 2024 raised concerns that functional meters were being dumped as scrap, potentially causing losses of more than ₹60 crore.

The issue emerged during Chhattisgarh’s large-scale shift to smart metering under the Revamped Distribution Sector Scheme (RDSS). Around 60 lakh smart meters are planned to be installed across the state at an estimated cost of over ₹1,000 crore. As part of this drive, nearly five lakh smart meters have already been installed, including about one lakh in Raipur. Reports claimed that many of the old meters removed from homes and businesses were lying unattended in zonal offices without a clear plan for reuse or disposal.

During the hearing, the Commission examined the process followed by the state distribution company, Chhattisgarh State Power Distribution Company Limited (CSPDCL), for classifying the replaced meters. As per a circular issued in April 2024, single-phase meters were marked as “good” if they were still under warranty, showed normal reading codes, and had working displays. Single-phase meters that had crossed their warranty period were declared scrap. However, three-phase meters that were still functional were kept aside for reuse in new service connections or in the agriculture sector, where smart meters are yet to be introduced.

Another concern was the continued purchase of conventional meters even after tenders for smart meters were underway. The Commission found that while contracts for smart meters were being finalized in early 2024, the company’s store and purchase department was still receiving shipments of traditional meters based on earlier orders placed in 2022 and 2023. The utility explained that it is legally required to provide new electricity connections within 10 to 15 days, which requires maintaining a sufficient stock of meters.

While CSERC accepted the technical criteria used for grading old meters, it pointed out a lack of coordination between departments. It was observed that the procurement of conventional meters could have been reduced in line with the smart meter rollout. The Commission termed this a management lapse and asked the company to take corrective steps.

On disposal, CSPDCL informed that scrap meters are being sold through e-auctions conducted by MSTC Limited. Between December 2024 and May 2025, more than 2.19 lakh meters were auctioned as per the draft guidelines of the Central Electricity Authority. The Commission closed the matter on February 20, 2026, directing the utility to improve coordination and ensure better resource management in the future.