Facing sustained public protests, the Uttar Pradesh government on Monday (May 4) stepped back from its push for mandatory prepaid smart electricity meters.
The policy was initially aimed at improving billing efficiency and reducing losses. Sources said that the state’s aggressive rollout of prepaid smart meters over the past year and a half was rooted in its interpretation of the Central Electricity Authority’s (CEA) 2022 regulation notification.
According to Avadhesh Verma, Chairman of Uttar Pradesh Electricity Consumers Forum and a member of the Central Electricity Advisory Committee, the move can be traced to clause 3(b) of the notification. It said consumers in areas with communication networks “shall” be supplied electricity through smart meters operating in prepayment mode.
Verma said that the Uttar Pradesh government interpreted this as a mandate, and thus began rolling out prepaid smart meters as the default for new connections and moving toward converting existing consumers. About 85 lakh smart meters have been installed so far, but implementation quickly ran into friction.
Complaints and protests
The rollout triggered protests across districts. Consumer complaints ranged from higher or inconsistent billing to automatic disconnections and a lack of transparency in prepaid deductions. The state government initially dismissed the concerns as being fuelled by misinformation and political motives.
As protests continued, the government held review meetings and issued directions to resolve issues, while the Uttar Pradesh Electricity Regulatory Commission (UPERC) also took suo motu cognizance. In some instances, consumers removed or damaged installed meters.
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“At the heart of the controversy was the issue of consumer choice. Under the Electricity Act framework, consumers are generally entitled to opt between prepaid and postpaid systems. The state’s attempt to enforce prepaid meters — especially for new connections — without explicit consent became a central point of contention, strengthening both protests and regulatory objections,” said Verma.
The government first announced a temporary halt to the conversion of existing postpaid meters into prepaid smart meters, but protests continued to escalate. Meanwhile, Union Power Minister Manohar Lal Khattar clarified in Parliament last month that prepaid smart meters are not mandatory, undercutting the interpretation that had driven Uttar Pradesh’s policy.
Subsequently, the CEA issued a fresh amendment in its 2026 gazette notification, revising the earlier provision. The amended clause removed the explicit requirement of “prepayment mode” and instead mandated installation of smart meters conforming to relevant standards, while allowing flexibility in implementation.
Adding to the pressure, the UPERC also intervened by flagging concerns and seeking explanations from the state power utility. In a separate notice, UPERC pointed out non-compliance with standards related to the timely reconnection of supply in prepaid systems, even raising the possibility of penalties.
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In its April 23 order, it noted that reconnections within the mandated two-hour window were achieved in only 77% of cases, far below the 95% benchmark, and asked why a Rs 1 lakh per day penalty should not be imposed on the Uttar Pradesh Power Corporation Limited.
According to sources in the government, these developments prompted a course correction before any adverse direction from regulatory authorities or courts could come.
The climbdowns
As pressure mounted, the government began recalibrating its approach in phases:
April 19 (first climbdown): The state paused new smart meter installations pending a technical committee review and introduced immediate relief measures. These included no disconnection for up to three days or a limit of Rs 200 negative balance (for consumers with up to 2 kW load), a 45-day no-disconnection transition period for new users, a five-level SMS alert system, and no power cuts on Sundays or holidays.
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April 24 (second climbdown): The government announced that consumers with up to 1 kW load would not face disconnection for 30 days, regardless of negative balance, while 2 kW consumers would continue to receive supply despite dues of up to Rs 200. SMS alerts were made mandatory, giving consumers time to respond.
Politics in an election year
The timing of the rollback is also significant. With Assembly elections due next year, the issue had begun to gain political traction. Opposition parties — including the Samajwadi Party, Congress, and AAP — extended support to protesting consumers, framing the issue as one of anti-consumer policy.
Ultimately, the decision does not end the smart metering programme, but removes the mandatory prepaid billing aspect. The broader challenge for the government now lies in ensuring accurate billing, reliable systems, and responsive grievance redressal.
