LUCKNOW Bowing to mounting statewide protests, the UP government’s decision to convert all smart prepaid electricity meters to postpaid and that all new electricity connections will be issued only with postpaid meters has effectively replaced one mandate with another, once again leaving consumers without the option to choose their billing preference.
The decision is being seen as a knee-jerk response to mounting public pressure, but it has triggered a fresh debate over consumer choice.
Till recently, the UP Power Corporation Limited (UPPCL) had been publicly highlighting multiple benefits of prepaid electricity connections for consumers. However, widespread protests against prepaid meters reported from across the state appear to have alarmed the government, with officials indicating concerns that the issue could snowball into a major electoral flashpoint.
Sources said the government moved swiftly to reverse its position, without waiting for the report of the expert committee that was constituted only a few days ago to examine complaints related to smart meters.
Under the Electricity Act, 2003, and the revised guidelines issued by the Central Electricity Authority (CEA) on May 1, consumers are explicitly entitled to choose between prepaid and postpaid metering. Power sector experts argue that both systems have their merits and should coexist.
As per clause 5 of Section 47 of Electricity Act, 2003: ‘A distribution licensee shall not be entitled to require security…if the person requiring the supply is prepared to take the supply through a prepayment meter.’ The UP Regulatory Commission (UPERC), in the previous order, stated the language of Section 47 (5) gives the impression that consumers had a choice between prepaid and postpaid meters though the commission refused to give any conclusive remark on the controversy.
The UPPCL had been pushing prepaid meters for over a year by converting all existing smart postpaid meters into prepaid and deciding to issue all new power connections with a prepaid meter only.
The corporation cited the Electricity (Rights of Consumers) Rules, 2020, that said no connection shall be given without a meter and such a meter shall be the smart prepayment meter. It also cited CEA’s 2022 Metering Regulations: that said all consumers in areas with a communication network shall be supplied electricity with smart meters working in prepayment mode.
As prepaid meters were being pushed all over the country, including UP, consumer bodies and social and political activists were criticising the move saying consumers were not being allowed to exercise the choice between prepaid and postpaid despite the Electricity Act giving such a choice to them.
Finally, 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.
“But by deciding to convert all prepaid meters into postpaid and issue all new connections in the postpaid mode only – a U turn the government took due to statewide public protests again deprives consumers of the choice the Electricity Act and the CEA’s revised notification of April 1 clearly provide to them,” a senior energy department official argued.
The issue, he said, was not prepaid versus postpaid, but the absence of consumer choice.
“Prepaid meters, in particular, have been promoted as an effective tool to curb mounting arrears and improve billing efficiency. Many consumers, especially those seeking tighter control over electricity usage and expenditure, may still prefer prepaid options,” the official pointed out
On the question of giving a choice to consumers, UPPCL director (commercial) Prashant Kumar Verma claimed that the CEA’s revised notification did not explicitly mention such an option for consumers. He, however, admitted many consumers calling the power department allowing them to continue with the prepaid meters only.
“We are receiving calls from consumers who want to retain prepaid connections which, according to them, come with several inbuilt advantages including 2% rebate in bills,” he said, expressing the department’s dilemma, adding: “But for now, as per the government’s directives, we have decided to convert all prepaid meters into postpaid.”
According to Verma, around 80 lakh of the 86 lakh smart postpaid meters had been switched to prepaid connections across the state so far. “Now, we will again convert all prepaid meters back into postpaid by making necessary changes in the software and it may take a month’s time for the exercise. But no consumer’s supply will be disconnected on negative balance in the meantime,” he said.
The latest government order communicated to the press by energy minister AK Sharma on Monday night may ease immediate public anger, but it raises questions about policy consistency and compliance with central norms. Observers said the government will need to align its approach with the legal framework to ensure that consumer rights are not compromised while addressing operational and financial concerns of discoms.
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