Regulator's clarification posesa fresh challenge for UPPCL
Lucknow, June 1 -- The Uttar Pradesh Electricity Regulatory Commission's (UPERC) clarification that consumers are free to choose between prepaid and postpaid smart electricity meters has created a fresh operational challenge for the Uttar Pradesh Power Corporation Limited (UPPCL), which may now have to manage two parallel billing systems across the state.
In a communication issued to UPPCL on Friday, UPERC clarified that neither the Electricity Act, 2003, nor the Electricity (Rights of Consumers) Rules, 2020, make prepaid smart meters mandatory. The regulator said consumers have the right to opt for either prepaid or postpaid billing while using smart meters.
The clarification comes against the backdrop of a prolonged controversy over the state's smart metering programme being implemented under the Revamped Distribution Sector Scheme (RDSS). Since the launch of the drive, UPPCL had been aggressively promoting prepaid smart meters, and in many cases, consumers alleged they were not being given the option of postpaid billing.
The move triggered protests from consumer groups and political parties across several districts. Facing mounting opposition, UPPCL subsequently decided to migrate consumers to the postpaid mode around a month ago. However, UPERC's latest order has reopened the issue by formally recognising the consumer's right to choose either payment mode.
Officials said the order could complicate implementation of the ambitious smart metering project.
"If a section of consumers opts for prepaid billing while others continue with postpaid billing, power utilities may be required to simultaneously operate two billing systems with different accounting, recharge, recovery and consumer service mechanisms," a senior energy department official said.
UPERC cited Section 47(5) of the Electricity Act, which exempts prepaid consumers from furnishing security deposits, to underline that prepaid metering is a matter of consumer choice rather than a compulsory arrangement.
It also referred to provisions of the Cost Data Book issued on December 31, 2025, which recognise both prepaid and postpaid smart metering options.
UPPCL director (Commercial) Prashant Kumar Verma said the corporation was yet to receive the regulator's order.
"We will study the instructions and then take a call accordingly," he said. He also said around 80 lakh (eight million) prepaid meters had been converted to postpaid ones by now.
Welcoming the development, UP Rajya Vidyut Upbhokta Parishad chairman Awadhesh Kumar Verma described the order as a major victory for electricity consumers and their right to choose....
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