The Uttar Pradesh government has officially begun rolling back its mandatory prepaid smart electricity meter system, directing all distribution companies (discoms) to revert to the postpaid billing model for millions of consumers across the state. This significant policy shift follows months of widespread protests, consumer complaints, and concerns regarding alleged billing irregularities and operational issues associated with the prepaid meters.
According to official orders issued by the Uttar Pradesh Power Corporation Ltd (UPPCL) Managing Director Nitish Kumar on May 6, the transition from prepaid to postpaid mode will be implemented through backend software changes at the UPPCL headquarters. Consumers will no longer be required to recharge their balances in advance. Instead, they will receive monthly bills after their electricity consumption, mirroring the previous billing mechanism. For instance, electricity used in May 2026 will now be billed in June 2026. This change will be implemented without the need for consumers to physically replace their existing smart meters.
The rollback decision, announced earlier in the week, came after sustained public opposition from consumers, traders, and farmer groups who had raised objections to mandatory prepaid recharges, abrupt disconnections, and alleged discrepancies in billing linked to the smart meters. The move applies to all smart meters installed under the Revamped Distribution Sector Scheme (RDSS) across major discoms in Uttar Pradesh, including Purvanchal, Madhyanchal, Dakshinanchal, and Paschimanchal Vidyut Vitran Nigams, as well as KESCO Kanpur.
Under the restored postpaid system, smart meter bills will be generated by the 10th of each month and communicated to consumers via SMS and WhatsApp. Consumers will also have access to their bills through official WhatsApp chatbots and the 1912 electricity helpline. For areas experiencing connectivity or communication issues that prevent automatic readings by the 5th of the month, manual readings will be taken by Advanced Metering Infrastructure Service Provider (AMISP) agencies to ensure timely billing.
In addition to reverting to postpaid billing, the government has introduced several relief measures. Consumers will be allowed to clear outstanding dues up to April 30 in up to 10 monthly installments. Special camps are scheduled to be organized at division and sub-division levels throughout May and June to address smart meter-related billing grievances. For consumers who had their security deposits refunded following the shift to prepaid meters, this amount will now be recovered in four installments instead of a lump sum payment.
The government has also issued strict directives to officials to ensure uninterrupted power supply, with immediate replacement of faulty transformers to prevent consumer inconvenience, particularly as the state heads into the peak summer season. The process of replacing old meters with new prepaid smart meters has been temporarily suspended, and resolving complaints related to already installed smart meters remains a priority.
The decision to discontinue the mandatory prepaid system comes after widespread protests in various districts, with consumers alleging forced migration to prepaid systems and a lack of transparency in billing. Initial interpretations of a Central Electricity Authority (CEA) regulation from 2022 had suggested a mandate for smart meters operating in prepayment mode in areas with communication networks. However, clarifications from the Union Power Minister and subsequent amendments to CEA notifications have indicated that prepaid smart meters are not mandatory, and consumers should have the freedom to choose between prepaid and postpaid billing.
Political parties, including the Samajwadi Party, have welcomed the rollback, terming it a victory for public opposition and demanding adjustments for any excess charges levied under the prepaid system. The state government, however, maintains that smart meters are intended to improve efficiency, reduce losses, and ensure accurate billing. The rollback specifically applies to individual domestic consumers, with apartment and housing society meters continuing to operate under the existing prepaid system, as clarified by the department’s helpline.
The Uttar Pradesh government’s decision to shift back to postpaid billing for smart meters aims to address consumer grievances and restore confidence in the electricity supply system. The focus remains on ensuring reliable power, accurate billing, and responsive grievance redressal for the state’s electricity consumers.
The Chenab Times News Desk