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‘Smart’ Theft via Smart Electricity Meters
Dilip Patel
Ahmedabad, May 24, 2026
If the total electricity billing across Gujarat amounts to ₹1 lakh crore, the government stands to receive ₹17,000 crore of this sum in the form of electricity tax.
The Gujarat government is projected to generate an income of ₹13,000 crore from electricity taxes this year.
The Gujarat government’s revenue is set to rise from ₹12,000 crore to ₹18,000 crore, while electricity distribution companies face the prospect of financial ruin. Immediately following the conclusion of the elections, the BJP government commenced the installation of smart electricity meters.
For the fiscal year 2023-24, the total number of electricity consumers in the state stood at 20 million (2 crore).
Once all meters are upgraded to smart meters, the government’s tax revenue could potentially surge from ₹12,000 crore to ₹18,000 crore.
If every electricity meter is converted to a smart meter, the revenue of the electricity distribution companies could increase by ₹40,000 crore.
Consequently, the general public may have to face an increase in electricity costs amounting to between ₹30,000 crore and ₹40,000 crore.
According to information presented in Parliament, a total of 16.7 million (1.67 crore) smart meters are slated for installation across Gujarat; of these, 2.094 million (20.94 lakh) smart meters had already been installed by July 2025.
It was claimed that by November 2025, 2.876 million (28.76 lakh) meters had been installed. This implies that 780,000 (7.8 lakh) meters were installed within a single year.
In the Saurashtra region alone, 3.3 million (33 lakh) meters are scheduled to be replaced.
Central Gujarat — MGVCL (Madhya Gujarat Vij Company Ltd.) had claimed six months ago to have installed 1.1 million (11 lakh) smart meters.
Around the year 2019, approximately 26,000 smart meters were installed across Gujarat.
Currently, there is no specific legislation governing this process.
**Benefits:**
The meters utilize communication tools similar to SIM cards.
Features include online recharging capabilities, daily consumption monitoring, potential electricity savings for consumers, prevention of theft, and significantly easier detection of electricity pilferage.
According to data provided by the Union Ministry of Power in Parliament, a decision was taken under the RDSS (Revamped Distribution Sector Scheme) to install 16.7 million (1.67 crore) smart electricity meters across Gujarat. However, by July 15, 2025, only 2.1 million smart meters had been installed.
Electricity consumers complain that electricity bills generated by smart meters are higher than those from traditional meters. Consequently, they are unwilling to use smart electricity meters.
People are actively protesting against smart electricity meters.
Utility companies currently hold deposits totaling ₹12,000 crore belonging to consumers.
The Power Minister had announced in the Legislative Assembly that the installation of electricity meters would be made mandatory.
In areas where smart meters were installed, the resulting bills were several times higher than normal bills, sparking a major controversy.
Protests also took place outside VCL offices, where people demanded the scrapping of this smart meter scheme.
Smart meters will need to be replaced every 7 to 10 years, whereas traditional meters often remain in service for 20 to 25 years without replacement.
The government acts solely in accordance with the wishes of corporate entities. Its objective is to generate revenue for—and thereby strengthen—corporate firms; in turn, these corporate firms provide funding that reinforces the ruling party.
Since the government possesses ample “religious injections” to secure votes, neither the government nor the ruling party has any cause for concern!
A smart electric meter is a digital device that, instead of relying on the manual reading of traditional meters, automatically records real-time electricity consumption data and transmits it to the utility provider. This advanced meter features capabilities such as remote monitoring, detailed consumption analysis, and tamper detection.
People view smart meters as a “smart nuisance.”
Based on the “Time of Day” (TOD) tariff system, the per-unit cost of electricity will vary between day and night.
Electricity rates will be lower during the day and higher at night.
Corporate entities offer no explanations or responses regarding issues related to smart meters.
There will be no need for meter readers; bills will be delivered directly to the customer’s mobile phone.
Protests against smart meters are currently sweeping across the state; people are picketing the offices of electricity utility companies and lodging complaints about receiving bills that far exceed their actual electricity consumption.
Initially, rotary-type electricity meters operated using magnets. They were replaced. Digital meters were installed. Now, there are smart meters.
Digital meters are capable of storing data regarding electricity consumption.
Tax Revenue for the Government:
15 percent on bills up to Rs. 1,000, and 20 percent on bills exceeding Rs. 1,000.
On average, the government collects Rs. 600 in taxes from every consumer.
Over the last 10 years, electricity tax revenue has surged from Rs. 6,700 crore to Rs. 13,000 crore.
This represents a 100 percent increase.
2020-21: Rs. 8,000 crore
2021-22: Rs. 9,770 crore
2022-23: Rs. 10,600 crore
2023-24: Rs. 11,736 crore
2024-25: Rs. 11,741 crore
2025-26: Rs. 11,741 crore
2026-27: Rs. 12,493 crore
Rs. 13,022 crore (Budget Estimate)
If we calculate electricity consumption based on the government’s electricity tax revenue—assuming an average revenue rate of 17 percent—the total value of electricity bills amounts to between Rs. 78,000 crore and Rs. 80,000 crore.
Even if the billing amount increases by just 10 percent, it translates to a profit of Rs. 8,000 crore for the utility companies.
There are complaints that, in many areas, electricity supply is being recorded at levels 50 percent higher than actual consumption. Based on this calculation, the people of Gujarat could face additional electricity bills totaling Rs. 40,000 crore.
Modi Discontinued Keshubhai’s Electricity Scheme for the Poor
Starting in 1995, Keshubhai had devised a plan to provide relief of 50 units per month on electricity bills for the poor and the middle class.
Following the positive results yielded by this initiative, starting in 1998, the middle class was granted a 25 percent concession on domestic electricity bills for consumption up to 100 units. Modi discontinued a scheme initiated by Keshubhai Patel’s BJP government, which had been providing relief to the poor since February 2003.
The election manifesto released prior to the 2002 polls contained no mention of free electricity for the poor.
Modi cited the necessity of investing in productive resources and cultivating the habit of conserving electricity as the reasons for this decision.
The Modi government withdrew a 25% relief package worth ₹125 crore, while simultaneously allocating free grazing lands to industries. Narendra Damodardas Modi is synonymous with breaking promises. In 2022, Kejriwal had pledged to provide 300 units of free electricity in Gujarat.
