An industry committee has proposed a nationwide transition to smart prepaid metering for domestic piped natural gas (PNG), labeling it a “critical and forward-looking reform” for the sector. This recommendation was detailed in a report recently submitted to the Petroleum and Natural Gas Regulatory Board (PNGRB).
The committee stated that this shift is essential to tackle longstanding issues such as billing inefficiencies, consumer defaults, high operational costs, safety risks, and limited visibility on consumption and network performance. The report advocates for the installation of smart prepaid meters for all new connections within six months following regulatory updates, alongside a four-phase plan to replace existing conventional meters.
As of January 31, there were approximately 16.5 million domestic PNG connections, in addition to 48,568 commercial and 21,512 industrial connections, with 10.3 million of these being active. In response to global disruptions affecting LPG supply, the government has accelerated the adoption of PNG, with 480,000 connections gasified since March and 530,000 new registrations recorded.
While some gas companies have initiated the installation of smart meters on a limited basis, they are currently employing various technologies due to the lack of standardized guidelines and necessary regulatory reforms.
The five-member panel, led by PNGRB Secretary Anjan Kumar Mishra, conducted a thorough technical and economic assessment, along with consultations with gas companies, before arriving at its recommendations. Recognizing that gas companies would benefit significantly from this transition—characterized by reduced bad debts, lower manual billing costs, and improved cash flows—the committee advised that any additional costs incurred from the shift should not be transferred to consumers, but rather absorbed by city gas distribution (CGD) entities.
