According to reports, taking a giant stride forward in bringing next-generation reforms in power sector, Delhi’s power regulator DERC has decided to introduce a smart metering system through which consumers can make “informed choices” about electricity use based on varying cost and availability during the course of a day.
Through the initiative, first of its kind in the country, consumers will get real-time information about price of power depending on availability and procurement cost and accordingly they will have the option of shifting energy consumption, like running water pump or using washing machines, to non-peak hours.
For this, Advanced Metering Infrastructure (AMI), widely used in the US and European countries, will be installed to facilitate a two-way wireless communication between consumers and power distribution utilities.
“We have decided in principle to introduce the advanced metering system which will empower the consumers to voluntarily decide on their power consumption based on price of power, availability and load factor,” the Delhi Electricity Regulatory Commission chairman, Mr P.D. Sudhakar, told PTI.
He said DERC wants to install AMI to put in place an effective demand response mechanism through which consumers will be able to save money on power consumption while discoms will be able to cut down power purchase cost as price of power goes up during peak hours.
The DERC has already held discussions with major stakeholders such as power distribution companies and industrial consumers who hailed the initiative.
“Initially we are planning to involve the industrial consumers having a load of 300 Kilo Watt and above. “We do not want to impose it on anybody,” Mr Sudhakar said, adding that issues such as who will bear the cost of AMI and making the distribution network compatible with the proposed metering system are being finalised.