Conference of Indian Power Ministers

27 October 2022

CyanConnode Holdings plc

("CyanConnode" or the "Company")

Conference of Indian Power Ministers

CyanConnode Holdings plc (AIM: CYAN) provides an update on the Indian Smart Metering market, following discussions at The Conference of Power and Renewable Energy Ministers of State/ Union Territories ("UTs") (the "Conference"), which was held on 14 and 15 October 2022 in Rajasthan, India. R.K Singh, Union Minister for Power and New and Renewable Energy ("NRE"), chaired the Conference which was attended by Krishan Pal Gurjar, Minister of State for Power, Deputy Chief Ministers, Power, and NRE Ministers of States, along with Principal Secretaries of States and UTs.

During the Conference, detailed deliberations were held, with focus being on the financial viability and sustainability of the distribution sector, modernization and upgrading of power systems, and the development of power systems to ensure 24x7 power supply. Discussions included the investment and power sector reforms required. The States provided their inputs and suggestions on each of these pertinent issues.

Delegates considered the critical role of the distribution sector in ensuring financial and operational sustainability across the power sector value chain. The Conference debated the effective steps towards the reduction of Aggregate Technical and Commercial ("AT&C") losses which would ensure cost reflective tariffs, accounting of subsidies and timely payment of subsidies by state governments, clearance of outstanding dues of state government departments and adherence to Electricity Late Payment Surcharge and Related Matters Rules, 2022 ("LPS Rules") for timely payment of dues to generating companies. In order to reduce AT&C losses, it was agreed to expedite the deployment of prepaid smart meters to consumers and establish appropriate energy accounting systems.

There was a dedicated brainstorming session on prepaid smart metering and the Revamped Distribution Sector Scheme ("RDSS"), set up to improve financial and operational efficiency of the distribution companies ("DISCOMs"). The session focused on the key challenges facing DISCOMs, the benefits of prepaid smart metering, the current status and impact of the smart metering programme in India, and the key measures being undertaken by the government.

Highlighting the renewable energy sector achievements of the past few years , deliberations were made on policy, regulatory and institutional interventions required for fast-track implementation of renewable energy projects. It was emphasized that the states should support the Government of India's objectives for non-fossil installed capacity as well as creating an enabling framework to enhance the domestic manufacturing capacity in the renewable energy sector through various incentive measures.

Please click on link below to a pdf giving further information from this event.

https://cyanconnode.com/wp-content/uploads/2022/10/Smart-Metering-in-India-update.pdf

Further information will be released on CyanConnode's website as it becomes publicly available.

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About CyanConnode

CyanConnode is a world leader in narrowband radio frequency (RF) mesh networks that facilitate machine to machine (M2M) communication. CyanConnode's innovative technology uses the industrial, scientific, and medical radio band, (ISM), which is optimised to give exceptional performance and competitive total cost of ownership. Through global partnerships, CyanConnode provides customers with a solution for the rapid deployment of local or countrywide ISM RF mesh networks that provide reliable and secure M2M communication.

For more information, please visit www.cyanconnode.com