AI-powered smart meters help Bihar detect power thefts, generate ₹1.46 crore extra billing in Bhagalpur

Encouraged by the results, the power utility will expand analysis of smart meter data across Bihar to curb power theft and reduce aggregate transmission and commercial (AT&C) losses

The Bihar State Power Holding Company Limited (BSPHCL) will put to use the AI-driven electricity theft detection system in smart prepaid energy meters across the state after a pilot study of 1 lakh consumers in Bhagalpur (urban) electricity division between January 2024 and May 2025, uncovered widespread irregularities and generated ₹1.46 crore in additional billing, energy secretary and BSPHCL chairman-cum-managing director Manoj Kumar Singh said on Sunday.

AI-powered smart meters help Bihar detect power thefts, generate ₹1.46 crore extra billing in Bhagalpur

Sharing results of the pilot, Singh said data from about one lakh single-phase and three-phase smart meters was analysed, producing nearly 1,249 “high-probability leads” related to meter bypass and tariff misuse.

Among five AI-triggered leads of meter tampering, two cases were confirmed on inspection, giving a 40% anomaly detection rate. Of the 720 AI-flagged cases of meter/air-conditioner bypass or night theft, 140 (20%) were confirmed, leading to ₹98 lakh in additional billing. In another category, nearly 76% tariff misuse — such as domestic connections used for commercial purposes — was detected from 132 booked on inspection of smart meters against 170 AI-generated leads, resulting in ₹39.18 lakh in extra billing.

“Overall, around 44% of the AI-triggered leads through smart prepaid meters were found correct regarding meter tampering, meter or AC bypass, night theft, meter switching and mixed domestic-commercial usage, generating ₹1.46 crore additional billing during the pilot study,” Singh said.

Encouraged by the results, the power utility will expand analysis of smart meter data across Bihar to curb power theft and reduce aggregate transmission and commercial (AT&C) losses. The technology also helps identify suspicious connections near low-tension poles and reduces dependence on field staff for generating leads, improving monitoring and management control, he added.

Officials said that although collection efficiency has improved due to an aggressive prepaid smart metering drive, billing efficiency continues to be affected by electricity pilferage. Earlier inspections depended largely on random checks and local intelligence, yielding only about a 10% success rate. With AI-based analytics, inspection success has risen to nearly 50%, providing a scientific mechanism to plug revenue leakages.

Since the state cabinet approved installation of smart prepaid meters on March 1, 2019, Bihar’s billing efficiency has improved from 75.41% in FY 2019-20 to 86.45% in 2024-25, while collection efficiency increased from 86.04% to 97.70%. AT&C losses declined sharply from 35.12% to 15.54% over the same period.

Against a target of 1.71 crore meters, Bihar has so far installed 86 lakh smart prepaid energy meters — 57 lakh under the North Bihar Power Distribution Company Limited and 29 lakh under the South Bihar Power Distribution Company Limited.