Lucknow: The Central Electricity Authority (CEA) has rolled back a key provision in India’s smart metering policy, removing the mandatory “prepayment or prepaid mode” requirement for electricity consumers.Through its latest amendment to the Installation and Operation of Meters Regulations, CEA has modified the earlier 2022 rule that required all consumers in areas with communication networks to be supplied electricity through prepaid smart meters. In its notification dated Feb 28, 2022, the CEA had mandated that “all consumers shall be supplied electricity with smart meters working in prepayment mode” within govt timelines. This effectively made prepaid billing the default model for smart meter rollout across connected areas.However, in the latest amendment notified on April 1, the CEA has dropped the “prepayment mode” clause. The revised provision now states that consumers will simply be supplied electricity through smart meters conforming to Indian standards, without specifying any billing mode.The change marks a significant policy shift. While prepaid functionality is no longer mandatory, the amendment still retains it as an optional feature within Advanced Metering Infrastructure (AMI). The regulation specifies that AMI systems should include prepayment capability but stops short of enforcing it.In UP, the power corporation has installed over 84.5 lakh smart meters, of which 75.5 lakh are smart prepaid meters. There are over 3.8 crore power consumers in the state. The rollback comes after sustained objections from consumer groups, including the concerns raised by chairman of the Uttar Pradesh Rajya Vidyut Upbhokta Parishad and CERC advisory committee member Avadhesh Kumar Verma.“Back in Oct 23, 2025, I had written to the President of India, and again on Jan 16, 2026 during national review of Electricity (Amendment) Bill, 2025, I had raised the objection of violation of section 47(5) of Electricity Act, 2003 with Union power secretary Pankaj Agarwal and Central Electricity Authority (CEA) chairperson Ghanshyam Prasad. The Act passed by parliament is supreme and it gave power to consumers to choose between prepaid and postpaid, which CEA’s 2022 notification had dissolved. It’s a welcome move that CEA has rectified its mistake, it’s a victory for consumers,” Verma said.On April 2, Union power minister Manohar Lal Khattar had clarified in Parliament that smart prepaid electricity meters are optional and based on consumer choice, and not compulsory under the Electricity Act, 2003.Prepaid meter where no networkIn the latest amendment to the Installation and Operation of Meters Regulations of Central Electricity Authority, those areas where there is no communication network, the discoms can provide power billing with prepaid meters. In Uttar Pradesh, there are around 12 lakh prepaid meters.
