UPPCL Confirms Prepaid Smart Meters Mandatory for New Electricity Connections in Uttar Pradesh
The Uttar Pradesh Power Corporation Limited (UPPCL) has issued a clear directive stating that all new electricity connections in the state will continue to be issued exclusively with prepaid smart meters. This announcement comes amid ongoing confusion following recent amendments to central guidelines that allow consumers to choose between prepaid and postpaid metering systems.
Clarification Amid Central Rule Changes
UPPCL chairman and additional chief secretary of energy, AK Goel, emphasized that the suspension of smart meter installation applies only to the replacement of existing meters under the Revamped Distribution Sector Scheme (RDSS), not to new connections. "New power connection consumers will have only prepaid smart metering," he stated, marking the first official position from UPPCL after the central guidelines were revised.
In September 2025, UPPCL had mandated prepaid smart meters for new connections, citing Central Electricity Authority (CEA) regulations from 2022. However, on April 1, 2026, the CEA updated its rules to allow consumers the choice between prepaid and postpaid smart metering systems. Despite this amendment, UPPCL has not extended this choice to new consumers, leading to significant public and regulatory attention.
Consumer Impact and Regulatory Scrutiny
Data from UPPCL's Jhatpat portal reveals that between April 2 and April 19, 2026, as many as 20,971 new consumers were provided with prepaid smart meter connections. During the same period:
- 14,681 applicants paid Rs 2,800 for meters and are awaiting installation.
- 23,020 consumers have held back payments, apparently waiting for clarity on the policy.
The issue has drawn the attention of the Uttar Pradesh Electricity Regulatory Commission (UPERC). On April 16, the regulator sought a detailed response from UPPCL within 10 days after receiving complaints that distribution companies were allegedly forcing consumers to adopt prepaid smart meters. UPERC officials clarified that no directive has been issued mandating prepaid-only systems and stressed that installations must align with CEA regulations, which now provide flexibility for both prepaid and postpaid billing.
"UPERC's own cost data framework also includes provisions for both categories of consumers," an official source added. "Utilities may have to comply with the revised central rules. If the Union government has rolled back mandatory prepaid provisions, then utilities will need to implement consumer choice."
Central Government Stance and Industry Perspectives
The central government has reiterated that prepaid smart meters are not compulsory. In a written reply in Parliament on April 2, Union Power Minister Manohar Lal Khattar stated that the Electricity Act, 2003 allows consumers to opt for prepaid meters voluntarily. He pointed out that while distribution companies must provide prepaid meters upon request, there is no legal requirement to impose them on consumers.
Industry observers suggest that the preference for prepaid systems may be driven by operational considerations. Prepaid meters improve revenue collection efficiency and reduce defaults, as payments are made in advance, similar to prepaid mobile services.
Avadhesh Kumar Verma, chairman of the Uttar Pradesh State Electricity Consumer Council, asserted that UPPCL will have to implement the latest CEA regulations and provide consumers with a choice. According to UPPCL, around 82 lakh smart meters have already been installed in the state, with over 75 lakh being smart prepaid meters.
This ongoing situation highlights the tension between state-level policies and central guidelines, affecting thousands of electricity consumers in Uttar Pradesh who are seeking clarity and choice in their metering options.
