Panel Recommends Prepaid Smart Meters for Domestic PNG and Production Incentives for Manufacturers
Panel backs prepaid PNG metering, PLI support for smart meter makers
Business Standard
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A committee in India has proposed implementing prepaid billing for domestic piped natural gas (PNG) meters, aiming to enhance financial health for city gas distribution (CGD) entities. The panel also advocates for production-linked incentives (PLI) to support smart meter manufacturers, emphasizing the benefits of smart metering technology.
- 01The committee recommends a shift to prepaid billing for domestic PNG meters to improve cash flow for CGD entities.
- 02Smart diaphragm-based PNG meters are deemed the most cost-effective solution for large-scale deployment.
- 03The panel suggests that the government provide viability gap funding to facilitate smart meter implementation.
- 04Production-linked incentives could make smart meters more affordable for consumers.
- 05The committee emphasizes that additional costs should not be passed on to consumers.
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A committee established by the Petroleum and Natural Gas Regulatory Board (PNGRB) has proposed a nationwide transition to prepaid billing for domestic piped natural gas (PNG) meters to enhance the financial stability of city gas distribution (CGD) entities. The committee, led by Anjan Kumar Mishra, found that smart diaphragm-based meters provide significant advantages over traditional models, including automated readings and real-time monitoring, thereby reducing operational costs and bad debts. The committee's report highlighted that many domestic consumers default on payments, burdening CGD entities financially. To tackle this, it recommends that the government consider production-linked incentives (PLI) for manufacturers to lower costs for consumers and that any extra expenses related to smart metering should not be transferred to consumers. The panel also called for amendments to technical standards to ensure interoperability and security in smart metering systems. Established in June 2025, the committee evaluated the feasibility of smart metering technologies and proposed a structured implementation strategy.
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The shift to prepaid smart meters could lead to lower operational costs for CGD entities, potentially resulting in more stable gas prices for consumers.
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