Shimla Nagarik Sabha Leads Protest Against Electricity Privatization and Smart Meter Installation
The Shimla Nagarik Sabha conducted a week-long campaign in Shimla from August 21 to August 28, 2024, opposing the privatization of electricity, the implementation of smart prepaid meters, and the Electricity (Amendment) Bill, 2022. This campaign culminated in a large-scale protest outside the Deputy Commissioner’s office on August 28, 2024. Among the demonstrators were Sanjay Chauhan, Vijendra Mehra, Phalma Chauhan, Jagmohan Thakur, Ram Singh, Sonia, Vivek Kashyap, Kishori Dhadhwalia, Kalawati, Salman, Darshan, Deep Ram, Himmi, Prerna, Babu Ram, Ranjeev Kuthiala, Dalip, Ramu, Sunil Vashishth, Bhupinder, Asha, and many others. The protestors demanded that the central government repeal both the privatization policy for the electricity sector and the Electricity (Amendment) Bill, 2022. They also called on the state government to immediately halt the privatization of the electricity board and the installation of prepaid smart meters.
The move to privatize the electricity sector traces back to 2003 when the Atal Bihari Vajpayee government introduced the Electricity Act, 2003. This legislation aimed to dismantle state electricity boards and transfer control of the electricity sector to private companies. The current Modi administration is intent on further privatizing the sector, as evidenced by the introduction of the Electricity (Amendment) Bill, 2022, despite widespread opposition. The central government has already mandated the installation of smart prepaid meters in several states. By December 2023, more than 22.22 crore smart meters had been approved for installation nationwide, with nearly 10 crore already in place. Himachal Pradesh has also begun installing these prepaid smart meters. In 2021, the previous BJP government led by Jai Ram Thakur installed around 1,51,740 smart meters in Shimla and Dharamshala. The current Congress government, under pressure from the central government, has awarded tenders worth ₹3,100 crores to private companies to install 26 lakh smart meters, effectively paving the way for the privatization of the electricity board.
The introduction of prepaid smart electricity meters will function much like mobile phone plans—once the balance is exhausted, the meter will stop working, cutting off the electricity supply to the household. The cost of a smart meter is currently estimated at ₹9,000, significantly higher than the ₹400-500 cost of existing electronic meters, with this expense to be borne by customers. The meter’s lifespan is expected to be only seven to eight years, and customers will also be responsible for any repair costs.
These changes are expected to result in significantly higher electricity bills, which could deprive the poor and middle-class of access to electricity. The state government, under pressure from the central government, is being forced to implement privatization policies in the public sector. The central government has made financial assistance to state governments conditional upon the cessation of aid to the general public. Privatizing the electricity sector and implementing smart meters are leading to the discontinuation of subsidies for the poor and middle-class, with the state government deciding to end the provision of 125 units of free electricity. Private companies are expected to charge higher rates for electricity, and the cost of repairing electrical faults will also be passed on to the public. This smart meter scheme poses a significant threat to the livelihoods of the common people, farmers, small businesses, shopkeepers, and those operating flour and saw mills, as well as the poor and middle-class.
The implementation of the smart meter scheme is expected to lead to the inevitable privatization of the electricity sector, with private companies taking control of electricity distribution. These companies are likely to use the infrastructure built by government electricity boards for their own profit, resulting in job losses for technical staff employed by the boards. The closure of electricity boards also raises concerns about the future of pension payments for retired employees.
The Shimla Nagarik Sabha urges the public to unite in opposition to the Modi government’s privatization policies and the Electricity (Amendment) Bill, 2022, and to resist the state government’s implementation of these policies under central government pressure, including the handing over of the state’s electricity board to private companies and the installation of prepaid smart meters across the state.
