Government Clarifies Smart Prepaid Electricity Meters Are Optional, Not Mandatory
The Union government provided a crucial clarification in Parliament on Thursday, stating that smart prepaid electricity meters are entirely optional and based on consumer choice, not compulsory under the Electricity Act, 2003. This significant announcement was made by Union Power Minister Manohar Lal Khattar in a written reply in the Lok Sabha, addressing questions raised by Nagina MP Chandra Shekhar and Hanuman Beniwal from Nagaur, Rajasthan.
Legal Framework and Consumer Rights
In response to the parliamentary questions, the government explicitly referenced Section 47(5) of the Electricity Act, 2003, which empowers consumers to voluntarily opt for prepaid meters. Under this provision, when a consumer requests a prepaid meter, the electricity distribution licensee is legally obligated to provide it without charging any security deposit. Minister Khattar emphasized that this provision does not mandate the compulsory installation of prepaid meters for existing consumers, reinforcing the principle of consumer autonomy.
National Promotion and Incentives
The Ministry of Power acknowledged that prepaid smart meters are being actively promoted across the nation as part of broader power sector reforms, particularly under the Revamped Distribution Sector Scheme (RDSS) launched in July 2021. This ambitious scheme aims to enhance the quality, reliability, and financial health of power distribution companies (discoms). However, the government stressed that its approach is focused on incentivizing adoption through benefits and awareness rather than enforcing it through mandates.
Installation Statistics and State Proposals
The government informed the house that over 6.13 crore smart meters have been installed across the country under various central and state schemes, with approximately 2.25 crore operating in prepaid mode. States have proposed nearly 20 crore prepaid smart meters under the RDSS framework, alongside additional meters for distribution transformers and feeders, indicating a significant scale-up in infrastructure planning.
Uttar Pradesh Scenario and Consumer Concerns
In Uttar Pradesh, the power corporation has installed over 84.5 lakh smart meters, out of which 75.5 lakh are smart prepaid meters. The Uttar Pradesh Rajya Vidyut Upbhokta Parishad welcomed the Union government's clarification, with Avadhesh Kumar Verma, chairman of the consumer forum and UPERC advisory committee member, stating, "With this clarification, the PCL now has the responsibility to seek consent from consumers before converting their smart meter into a prepaid smart meter. They have already converted 75.5 lakh meters into smart prepaid meters without consent." Notably, in Uttar Pradesh, around 53 lakh smart prepaid meter consumers owe more than Rs 1,670 crore in arrears, highlighting ongoing financial challenges.
