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No clarity, no choice: Row over prepaid meters in UP deepens amid institutional silence

The UP electricity sector faces growing confusion after a Centre gazette revision. While the Centre says prepaid meters are not mandatory, UP continues to issue new connections only in prepaid mode, and UPERC remains silent, leaving consumers with little clear choice.

Why It Matters

The mismatch between central policy and state implementation could affect consumer rights, billing options, and the financial planning of utilities under RDSS, with broader implications for policy clarity in Uttar Pradesh.

Timeline

7 Events

Ground reality: meters installed and RDSS procurement constrain policy options

May 2, 2026

Insiders note that around 80 lakh prepaid smart meters have already been installed in the state and several lakh more have been procured under the Centre’s RDSS. Rolling back to a parallel system could complicate contracts and financial planning, though prepaid meters help utilities collect charges in advance.

UPPCL MD: awaiting Centre guidelines; continues prepaid policy for new connections

May 2, 2026

UPPCL managing director Nitish Kumar says detailed Centre guidelines are expected following the revised notification, but for now new connections will be issued with smart prepaid meters only.

Awadhesh Kumar Verma files petition with UPERC

May 2, 2026

UP Rajya Vidhyut Upbhokta Parishad chairman Awadhesh Kumar Verma files a petition before the UPERC urging it to enforce the Centre’s position regarding consumer choice and billing arrangements.

Privately, UPERC officials acknowledge non-mandatory status post-notification

May 2, 2026

Privately, UPERC officials concede that prepaid meters cannot be forced upon consumers after the Centre’s revised notification and reference Section 47(5) of the Electricity Act, 2003, which allows flexibility in billing. They note the earlier push for mandatory prepaid systems ran contrary to the main law.

UPERC silent on the revised Centre position

May 2, 2026

UPERC officials maintain silence on the Centre’s revised notification and its impact on prepaid vs post-paid billing; UPERC chairman Arvind Kumar did not respond to media inquiries.

UPPCL continues to issue new connections only in prepaid mode

May 2, 2026

UPPCL has clarified that all new electricity connections will be issued only with prepaid meters, effectively denying consumer choice for fresh applicants.

Centre issues revised gazette notification on prepaid meters

April 2026

The Centre's revised gazette notification drops the explicit mandate for prepaid smart meters and states that smart meters will continue to have prepaid functionality, not mandating prepaid meters. CEA director RK Tiwari said prepaid meters are not mandatory and that states can set their own rules, as electricity remains a concurrent subject.