LUCKNOW: The Uttar Pradesh Power Corporation Limited (UPPCL) has clarified that all new electricity connections in the state will continue to be issued only with prepaid smart meters.The suspension of smart meter installation applies only to replacement of existing meters under RDSS, and not to new connections, UPPCL chairman and additional chief secretary, energy, AK Goel told TOI.“New power connection consumers will have only prepaid smart metering,” he said. marking the first clear official position from UPPCL after recent changes in central guidelines.The clarification comes amid confusion following amendments by the Central Electricity Authority (CEA) In Sept 2025, UPPCL had made prepaid smart meters mandatory for new connections citing Central Electricity Authority (CEA) 2022 regulations. However, on April 1, 2026, the CEA revised its rules, stating that consumers should be allowed to choose between prepaid and postpaid smart metering systems.Despite this amendment,But UPPCL had not extended the choice to new consumers. Data from the corporation’s Jhatpat portal shows that between April 2 and April 19, as many as 20,971 new consumers were given prepaid smart meter connections. During the same period, 14,681 applicants paid Rs 2,800 for meters and are awaiting installation, while 23,020 consumers have held back payments, apparently waiting for clarity on the policy.The issue has also 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 said no directive has been issued mandating prepaid-only systems. They 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,” added the official source.“Utilities may have to comply with the revised central rules. If Union govt has rolled back mandatory prepaid provisions, then utilities will need to implement consumer choice,” the official added.The Centre has reiterated that prepaid smart meters are not compulsory. In a written reply in Parliament on April 2, Union power minister Manohar Lal Khattar said 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 say 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, said 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 as smart prepaid meter.
