Smart meter rollout slows Power Minister’s dynamic pricing push

Meters first at GED substations before wider rollout

ASHLEY DO ROSARIO | 3 hours ago

PANAJI

Power Minister Ramkrishna (Sudin) Dhavalikar jolted Goa’s electricity consumers over a fortnight ago by announcing that tariffs would shift to dynamic pricing from December. He had said households would pay higher rates after sundown, when demand spikes, and lower rates during the day.

The declaration sparked immediate backlash, with critics and Opposition political parties warning of steep evening bills. Within days, Dhavalikar backtracked, conceding the plan cannot proceed without smart meters that record real-time consumption.

The government has already awarded Digismart Networks Pvt Ltd the contract to install these meters. The company will be responsible for supplying and installing the meters.

But senior officials in the Goa Electricity Department (GED) caution that the rollout will take time. “The smart meters will begin arriving now and will have to be tested before being fitted at our substations and other Transmission and Distribution installations. How it works will have to be monitored before taking up installation for government sector consumers,” a senior GED official said.

Officials confirmed the first installations will be at GED’s own substations and transmission points. Only after successful testing will the meters be extended to government sector consumers, with households and private users to follow later. No timeline has been set for full coverage as yet.

Dynamic pricing, common in advanced power markets, spreads demand more evenly by charging more during peak hours and less during off-peak periods. Protagonists say it promotes efficient consumption and eases grid stress. But without smart meters, billing consumers on fluctuating demand is impossible.

Goa’s smart meter rollout was approved by the Pramod Sawant-led cabinet in March 2025, with Digi Networks Ltd winning the tender.

The project will be largely funded under the Centre’s Revamped Distribution Sector Scheme (RDSS), which covers most of the Rs 467.4-crore cost.

It involves installation of 7.5 lakh smart prepaid meters across the State. The formal cabinet approval on March 20, 2025, cleared the way for the rollout. The smart meters are expected to record real-time consumption, enable prepaid billing, and reduce losses in the distribution system.

For now, Goa’s ambitious plan is on hold. GED is focused on proving the new technology works reliably before exposing thousands of consumers to variable tariffs. The delay highlights both the promise and the hurdles of modernising the State’s power sector.

What ‘dynamic pricing’ means for consumers
PANAJI: Dynamic pricing makes electricity costlier during peak hours, usually evenings, and cheaper in off-peak times. It aims to shift usage to low-demand periods, easing grid pressure. Smart meters are essential, as they track real-time consumption for accurate billing.
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