**Executive Summary**
This document presents the Government of India's response to a parliamentary question regarding guidelines issued to improve consumer service under the Revamped Distribution Sector Scheme (RDSS). The scheme, launched in July 2021, aims to enhance power supply quality and reliability. It outlines measures for smart meter installation, consumer benefits, and grievance redressal mechanisms.
**Key Points / Main Content**
* **Revamped Distribution Sector Scheme (RDSS):**
* Launched in July 2021.
* Objective: To improve power supply quality and reliability.
* Focus: Financially sustainable and operationally efficient Distribution Sector.
* **Smart Metering:**
* Prioritized for Government establishments, commercial, industrial, and high-load consumers.
* 20.33 Cr smart meters have been sanctioned under the scheme.
* 4.19 crore smart meters have been installed under the scheme and 5.59 crore smart meters have been installed across the country under various schemes.
* **Consumer Benefits & Advisories:**
* Rebates for prepaid meter installation.
* No penalty based on maximum demand recorded by smart meter.
* Recovery of past arrears in easy installments.
* Installation of check meters.
* Accurate billing, mobile apps for data, time-of-day consumption enablement, smart meter recharge, and net-metering facilitation.
* **Monitoring and Grievance Redressal:**
* Monitored centrally by Nodal Agencies (Power Finance Corporation Ltd and REC Ltd) and an Inter Ministerial Monitoring Committee.
* State level monitoring by Distribution Reforms Committee (DRC).
* Consumer Grievance Redressal Forums (CGRFs) established at different levels of distribution utility.
* Consumers can approach the CGRF and then the Ombudsman for resolution.
**Impact Analysis**
**Consumers**
* **Impact:** Enhanced services, accurate billing, more control over consumption, and accessible grievance redressal mechanisms.
* **Action Required:** Utilize mobile apps for consumption monitoring, engage with CGRFs and the Ombudsman for unresolved issues.
**Distribution Utilities (DISCOMs)**
* **Impact:** Improved financial discipline, increased collection efficiency, better energy accounting, improved load forecasting, and data analytics capabilities.
* **Action Required:** Implement smart metering infrastructure, adhere to advisories/SOPs for consumer service, engage with Nodal Agencies for fund release, and comply with monitoring requirements.
**Government of India/Ministry of Power**
* **Impact:** Improved power distribution sector, greater transparency, and enhanced consumer satisfaction.
* **Action Required:** Continue monitoring RDSS implementation, address grievances through established mechanisms, and ensure effective coordination among stakeholders.
**State Governments**
* **Impact:** Responsible for the execution of the scheme.
* **Action Required:** Oversee and monitor implementation through the DRC.
Key Entities Referenced
Revamped Distribution Sector Scheme (RDSS): A Government of India scheme launched in July 2021 to improve the quality and reliability of power supply through financially sustainable and operationally efficient distribution.
Ministry of Power: The ministry responsible for issuing guidelines and monitoring the RDSS scheme.
Electricity (Rights of Consumers) Rules, 2020: Rules issued by the Ministry of Power to strengthen the Consumer Grievance Redressal System and enhance consumer services.
Consumer Grievance Redressal Forums (CGRFs): Forums established to address consumer grievances related to electricity distribution.
GOVERNMENT OF INDIA
MINISTRY OF POWER
LOK SABHA
UNSTARRED QUESTION NO.2284
ANSWERED ON 12.02.2026
GUIDELINES ISSUED TO IMPROVE CONSUMER SERVICE UNDER RDSS
†2284. SHRI BIDYUT BARAN MAHATO:
Will the Minister of POWER
be pleased to state:
(a) the national-level guidelines issued by the Government to improve consumer
service, energy efficiency and financial discipline through phased installation of smart
meters across the country under the Revamped Distribution Sector Scheme (RDSS); and
(b) the mechanisms put in place for monitoring and grievance redressal to ensure
consumer convenience and transparency at the central level?
A N S W E R
THE MINISTER OF STATE IN THE MINISTRY OF POWER
(SHRI SHRIPAD NAIK)
(a) : Government of India (GoI) launched the Revamped Distribution Sector Scheme
(RDSS) in July 2021 with the objective of improving the quality and reliability of power
supply to consumers through a financially sustainable and operationally efficient
Distribution Sector.
Fund release under the scheme for distribution infrastructure is linked to
performance of the distribution utilities against various parameters including financial
parameters like AT&C losses and Gap between the Average Cost of Supply and Average
Revenue Realised. This has helped improve financial discipline in the distribution utility.
Installation of pre-paid smart meters for consumers and system smart meters is
also an important intervention under RDSS which provides enhanced services to
consumers, improved financial discipline for DISCOMs through increased collection
efficiency and better energy accounting of the distribution system.
The installation of pre-paid smart meters for consumer categories is being
prioritised for Government establishments, commercial, industrial and high-load
consumers and subsequently for other consumers based on demonstration of benefits.
Under the scheme, smart metering works for 19.79 crore consumers, 2.11 lakh
feeders and 52.53 lakh Distribution Transformers (DTs), totaling 20.33 Cr smart meters,
have been sanctioned based on the proposal submitted by the States/ distribution
utilities and 4.19 crore smart meters have been installed. Smart meters have also been
installed under other schemes including States’ own schemes. In total, 5.59 crore smart
meters have been installed across the country under various schemes.To improve consumer experience and confidence for smart metering, the Ministry
has issued various advisories and Standard Operating Procedures (SOPs) which include:
i. Incentivising consumers for prepaid meter installation through rebates in bill;
ii. No penalty on consumer based on maximum demand recorded by smart meter;
iii. Mechanism for recovery of past arrears in easy installments;
iv. Installation of check meters for enhancing confidence in accuracy of smart meters.
The following benefits have been envisaged for consumers:
i. Accurate billing based on actual consumption, eliminating error and improving
transparency.
ii. Mobile apps with consumer-specific dashboards providing data to optimize
consumption and reduce expenses.
iii. Enablement of Time-of-Day consumption empowering consumers to shift loads to
save expenses.
iv. Convenience of smart meter recharge with small recharges.
v. Facilitate net-metering for roof-top solar installation.
The smart meters also help distribution utility in providing benefits like automatic
energy accounting, improved load forecasting, use of data analytics for demand side
management and facilitate an enabling ecosystem for energy transition. These benefits
eventually get passed on to the consumers in the form of better services and lower
costs.
(b): The works executed under RDSS are being monitored at the central level, through
the Nodal Agencies namely Power Finance Corporation Ltd and REC Ltd, and an Inter
Ministerial Monitoring Committee has been constituted at the Ministry level to sanction
the projects and monitor their progress. At State level, Distribution Reforms Committee
(DRC), chaired by Chief Secretary of the respective State, oversee and monitor the
implementation the scheme.
Further, Ministry of Power has issued the Electricity (Rights of Consumers) Rules,
2020 to strengthen the Consumer Grievance Redressal System and enhance consumer
services. As per these rules, Consumer Grievance Redressal Forums (CGRFs) have been
established at different levels in the distribution utility. If a consumer is dissatisfied
with the resolution provided by the utility, they can approach the CGRF and further the
Ombudsman, for resolution.
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