UPERC Imposes Rs 7.18 Lakh Penalty on UPPCL for Smart Meter Disconnections
UPERC Fines UPPCL Rs 7.18 Lakh Over Smart Meter Issues

UPERC Fines UPPCL Rs 7.18 Lakh for Delayed Reconnections

The Uttar Pradesh Electricity Regulatory Commission (UPERC) has imposed a penalty of Rs 7.18 lakh on the Uttar Pradesh Power Corporation Ltd (UPPCL) for failing to restore power supply within the mandated time frame to prepaid smart meter consumers. The commission took suo motu cognisance of reports indicating that over 1.93 lakh consumers experienced disconnections lasting more than two hours, even though their prepaid accounts showed a positive balance.

This action follows an examination of data regarding reconnection timelines between March 13 and April 10, during which consumers faced temporary power disruptions. On April 22, the Times of India had reported on the power outages caused by the smart metering system.

Details of the Violation

According to information submitted to UPERC by UPPCL, electricity supply to more than 40.27 lakh prepaid consumer households was disconnected during the period due to insufficient balance in their accounts. Of these, around 24.14 lakh consumers recharged their accounts and became eligible for reconnection. It was revealed that power supply was restored within 30 minutes for 18.78 lakh consumers, accounting for nearly 78% of reconnections. Additionally, power supply to 22.21 lakh consumers was restored within the two-hour period prescribed under regulations, representing about 92% of cases.

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However, approximately 8% of consumers—amounting to 1.93 lakh connections—had to wait for more than two hours after recharge for restoration of supply. The Commission noted that under the UPERC Standards of Performance Regulations, 2019, electricity supply to prepaid consumers should be restored within two hours of recharge, and distribution licensees are required to meet this standard in at least 95% of cases. The commission observed that the required benchmark was not achieved on several days between March 13 and April 10.

UPPCL's Defense Rejected

UPPCL argued that the smart prepaid metering programme was in a transition and stabilization phase. After examining the submissions, UPERC rejected these explanations and held that smart meter installations under the RDSS programme had already achieved operational status. The commission stated, “Recurring delays could not be treated as temporary failures and that consumers should not face prolonged outages after making payments.” It observed that delayed reconnections cause inconvenience and distress to consumers and undermine confidence in the electricity distribution system.

Penalty and Corrective Measures

Consequently, the commission imposed a penalty of Rs 7.18 lakh for violations recorded across 10 days when the prescribed standard was not met. The order also directed UPPCL to undertake a root cause analysis and implement corrective measures to prevent future occurrences.

Member of UPERC’s Supply Code Review Panel sub-committee and chairman of the Uttar Pradesh Rajya Vidyut Upbhokta Parishad (UPRVUP), Avadhesh Kumar Verma, described the action as the highest penalty imposed by any regulatory authority on a power corporation.

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