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UP backtracks on prepaid smart meters, ‘choice’ debate persists

by Asia Today Team
May 6, 2026
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LUCKNOW Bowing to mounting statewide protests, the UP authorities’s determination to transform all good pay as you go electrical energy meters to postpaid and that each one new electrical energy connections will likely be issued solely with postpaid meters has successfully changed one mandate with one other, as soon as once more leaving shoppers with out the choice to decide on their billing choice.

On April 1, the CEA issued a revised gazette notification eliminating the mandatory requirement for prepaid meters. The notification came days after Union power minister Manohar Lal Khattar informed the Lok Sabha that consumers had the liberty to choose between a postpaid and prepaid power connection. (Pic for representation)
On April 1, the CEA issued a revised gazette notification eliminating the necessary requirement for pay as you go meters. The notification got here days after Union energy minister Manohar Lal Khattar knowledgeable the Lok Sabha that customers had the freedom to decide on between a postpaid and pay as you go energy connection. (Pic for illustration)

The choice is being seen as a knee-jerk response to mounting public stress, but it surely has triggered a contemporary debate over client alternative.

Until just lately, the UP Energy Company Restricted (UPPCL) had been publicly highlighting a number of advantages of pay as you go electrical energy connections for shoppers. Nevertheless, widespread protests towards pay as you go meters reported from throughout the state seem to have alarmed the federal government, with officers indicating considerations that the difficulty may snowball into a significant electoral flashpoint.

Sources mentioned the federal government moved swiftly to reverse its place, with out ready for the report of the knowledgeable committee that was constituted just a few days in the past to look at complaints associated to good meters.

Beneath the Electrical energy Act, 2003, and the revised pointers issued by the Central Electrical energy Authority (CEA) on Might 1, shoppers are explicitly entitled to decide on between pay as you go and postpaid metering. Energy sector consultants argue that each programs have their deserves and will coexist.

As per clause 5 of Part 47 of Electrical energy Act, 2003: ‘A distribution licensee shall not be entitled to require safety…if the particular person requiring the availability is ready to take the availability by means of a prepayment meter.’ The UP Regulatory Fee (UPERC), within the earlier order, said the language of Part 47 (5) gives the look that customers had a alternative between pay as you go and postpaid meters although the fee refused to present any conclusive comment on the controversy.

The UPPCL had been pushing pay as you go meters for over a 12 months by changing all current good postpaid meters into pay as you go and deciding to subject all new energy connections with a pay as you go meter solely.

The company cited the Electrical energy (Rights of Customers) Guidelines, 2020, that mentioned no connection shall be given with out a meter and such a meter shall be the good prepayment meter. It additionally cited CEA’s 2022 Metering Laws: that mentioned all shoppers in areas with a communication community shall be provided electrical energy with good meters working in prepayment mode.

As pay as you go meters have been being pushed everywhere in the nation, together with UP, client our bodies and social and political activists have been criticising the transfer saying shoppers weren’t being allowed to train the selection between pay as you go and postpaid regardless of the Electrical energy Act giving such a option to them.

Lastly, on April 1, the CEA issued a revised gazette notification eliminating the necessary requirement for pay as you go meters. The notification got here days after Union energy minister Manohar Lal Khattar knowledgeable the Lok Sabha that customers had the freedom to decide on between a postpaid and pay as you go energy connection.

“However by deciding to transform all pay as you go meters into postpaid and subject all new connections within the postpaid mode solely – a U flip the federal government took as a consequence of statewide public protests once more deprives shoppers of the selection the Electrical energy Act and the CEA’s revised notification of April 1 clearly present to them,” a senior vitality division official argued.

The problem, he mentioned, was not pay as you go versus postpaid, however the absence of client alternative.

“Pay as you go meters, particularly, have been promoted as an efficient instrument to curb mounting arrears and enhance billing effectivity. Many shoppers, particularly these in search of tighter management over electrical energy utilization and expenditure, should choose pay as you go choices,” the official identified

On the query of giving a option to shoppers, UPPCL director (business) Prashant Kumar Verma claimed that the CEA’s revised notification didn’t explicitly point out such an choice for shoppers. He, nonetheless, admitted many shoppers calling the ability division permitting them to proceed with the pay as you go meters solely.

“We’re receiving calls from shoppers who wish to retain pay as you go connections which, in response to them, include a number of inbuilt benefits together with 2% rebate in payments,” he mentioned, expressing the division’s dilemma, including: “However for now, as per the federal government’s directives, we’ve determined to transform all pay as you go meters into postpaid.”

In accordance with Verma, round 80 lakh of the 86 lakh good postpaid meters had been switched to pay as you go connections throughout the state up to now. “Now, we are going to once more convert all pay as you go meters again into postpaid by making essential modifications within the software program and it might take a month’s time for the train. However no client’s provide will likely be disconnected on damaging stability within the meantime,” he mentioned.

The newest authorities order communicated to the press by vitality minister AK Sharma on Monday night time might ease speedy public anger, but it surely raises questions on coverage consistency and compliance with central norms. Observers mentioned the federal government might want to align its strategy with the authorized framework to make sure that client rights usually are not compromised whereas addressing operational and monetary considerations of discoms.



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