The Delhi's power regulator Delhi Electricity Regulatory Commission 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.

It is a giant leap forward in bringing next-generation reforms in the power sector.
Through the initiative, first of its kind in the entire 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 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," said DERC chairman, P D Sudhakar.

‘New mechanism’
He said DERC wants the installation of 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 cut down power purchase cost as price of power goes up during peak hours.

“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," Sudhakar said.

He added that issues like who will incur cost of AMI and making the distribution network compatible with the proposed metering system are being finalised. He said consumers can now control power use efficiently.