UPERC Mandates Refund of Excess Smart Meter Charges in Uttar Pradesh
The Uttar Pradesh Electricity Regulatory Commission (UPERC) has issued a directive requiring the Uttar Pradesh Power Corporation Limited (UPPCL) and state power distribution companies (discoms) to refund or adjust excess amounts collected from consumers for smart prepaid meters installed for new electricity connections. This order, made public on Saturday, follows a suo motu investigation by UPERC into unapproved charges levied since the technology rollout.
Details of the Unapproved Charges and Regulatory Violations
UPERC discovered that UPPCL had instructed discoms to recover charges for smart prepaid meters based on the 2019 Cost Data Book (CDB), despite the lack of approved rates for the newly introduced AMI-compatible meters at that time. Specifically, UPPCL was charging Rs 6,016 for single-phase meters and Rs 11,341 for three-phase meters, which were not sanctioned by the regulator.
The commission highlighted that this recovery of unapproved costs violates the Electricity Act 2003 and the existing regulatory framework. UPERC emphasized that such actions are impermissible in a regulated regime, stating that utilities cannot impose charges without explicit approval from the regulator.
Impact on Consumers and Refund Estimates
Since smart prepaid meters became mandatory for new connections on September 10, 2025, approximately 3.67 lakh consumers in Uttar Pradesh have been affected. The immediate refund liability is estimated at around Rs 127 crore. However, as UPPCL has been charging these unapproved amounts since the technology rollout began in late 2024 and early 2025, the total refund is expected to increase substantially.
Avadhesh Kumar Verma, a member of the UPERC supply code review panel sub-committee and chairman of the UP Rajya Vidyut Upbhokta Parishad, noted that more than 5 lakh consumers could receive refunds exceeding Rs 200 crore. He credited media reports, including those from TOI, for highlighting the anomalies and helping build the case against illegal recovery.
Revised Rates and Compliance Requirements
In response to the issue, UPERC approved revised rates for smart meters in a new CDB issued on December 31, 2025. Under these revised rates, the cost of a single-phase smart meter (AMI compatible) with a meter box was fixed at Rs 2,800, while a three-phase smart meter (AMI compatible) was approved at Rs 4,100.
The commission detailed that consumers had been charged significantly higher amounts than the approved rates, with excess recoveries of Rs 3,216 per single-phase connection and Rs 7,241 per three-phase connection.
Refund Mechanism and Adjustments
UPERC has directed UPPCL to adjust the excess amounts against pending electricity bills of affected consumers. If any balance remains after such adjustment, it must be credited in subsequent bills starting April 1 until the entire excess amount is refunded. For prepaid consumers, the excess amount must be reflected as credit in their accounts.
In cases where the smart meter cost was being recovered in instalments, the commission has ordered that instalments must cease once the admissible amount has been recovered. Any excess already collected must be credited to the consumer’s account.
Evidence and Further Actions
Evidence presented to UPERC showed that UPPCL’s own discoms were procuring smart prepaid meters at Rs 2,500–Rs 2,630 per unit, further supporting the case against the unapproved charges. All discoms have been mandated to submit a detailed compliance report by July 31, 2025, to ensure adherence to the refund order.
This regulatory action underscores the importance of consumer protection in the electricity sector and sets a precedent for accountability in utility pricing.
