Mumbai’s Smart Meter Rollout Slows Amid Bill Surge

Mumbai’s ambitious smart meter rollout has encountered significant setbacks as consumer complaints of inflated electricity bills have led to a drastic reduction in daily installations.

Adani Energy Solutions Ltd (AESL), the firm contracted to install smart meters for 1.05 million consumers of Brihanmumbai Electricity Supply and Transport (BEST), has significantly curtailed its installation pace, down to just 250-300 meters per day from a potential capacity of 1,000-1,200 meters daily, according to sources within BEST. This slowdown has been attributed to mounting dissatisfaction among consumers, particularly in residential areas, who have reported a surge in their electricity bills following the installation of these smart meters.

AESL, which holds a 30% market share in India’s smart meter segment, had secured a INR 13,000-crore contract last September to replace electricity meters across the Colaba to Sion/Mahim belt. However, the backlash from consumers has led to a strategic pullback, with the company focusing now primarily on high-end consumers and commercial establishments, while residential installations—comprising 65-70% of BEST’s customer base—are largely on hold. The deployment of smart meters has faced criticism not only for the inflated bills but also for the lack of transparency and consent in the installation process. Residents from Mazgaon and Sandhurst Road recently raised objections, alleging that their meters were replaced without proper notification or consent.

Complaints have also surfaced regarding variable security deposits and inadequate communication from BEST regarding the rationale behind the shift to smart meters, especially since digital meters had been installed less than two years ago. The issue has escalated into a political controversy, with opposition leaders accusing the ruling coalition of favouritism in awarding the contract to an Adani group company. Allegations have also surfaced regarding the collection of security deposits, which some estimate to be as high as INR 200 crore, further fuelling public dissent. A major protest is being planned later this month to oppose the continued installation of smart meters.

In response to the growing backlash, BEST officials have defended the accuracy of smart meters, attributing the rise in electricity bills to higher summer temperatures that drove up demand. They argue that smart meters, being more sensitive and accurate than their digital predecessors, have provided a more precise measurement of consumption. However, the officials acknowledged the need for clearer communication, especially concerning billing cycles, which some customers believe are being combined, resulting in seemingly higher charges.