ITI Ltd has emerged as the lowest bidder (L1 bidder) followed by Genus Power and KEONICS in the reverse auction of ‘50 lakh smart meter’ tender of power PSUs promoted Energy Efficiency Services Ltd (EESL).
ITI Ltd quoted the lowest price of Rs 2,503 per single phase smart meter. L&T had emerged as the lowest bidder in the first round of bids conducted last week, where the company had quoted Rs 2,722.
“Through the reverse auction, the price of the single phase smart meter has come down from Rs 2,722 to Rs 2,503, which is a reduction of 8% from the previous tender quote. The lower price discovered through reverse auction will further benefit the end consumers. Seven companies including L&T were invited for the reverse auction, as per tender terms and conditions where L&T has been outbid by ITI Ltd, Genus Power, and KEONICS,” EESL officials said.
As per government guidelines, EESL will invite Genus Power and KEONICS, who have emerged as the L2 and L3 bidders respectively, to match the L1 price. “Should the said parties match the L1 price, EESL will split the procurement of the single phase smart meter between three parties in a ratio of 50:30:20,” the officials added.
The meters will be installed over a period of three years in a phased manner in Uttar Pradesh and Haryana. 40 lakh smart meters will be deployed in UP and the remaining 10 lakh in Haryana.
Smart meters are a part of the overall Advanced Metering Infrastructure Solutions (AMI) aimed at better demand response, and designed to reduce energy consumption during peak hours. The overall AMI solution will also have a system integrator who will be responsible for meter installation, data storage on cloud, preparing dashboards among others etc. The bids for the system integrator are expected to open on October 31.
“EESL is procuring the smart meters and services of the system integrator with 100% investment and the utilities will make zero-investment. The repayment to EESL will be through savings resulting from enhanced billing efficiency, avoided meter reading costs, etc. It is said that the average cost of meter reading is Rs 40 per meter, which will be completely avoided,” the officials added.