UPERC bars mandatory prepaid conversion, says meter billing mode consumers’ choice

Lucknow: The Uttar Pradesh Electricity Regulatory Commission (UPERC) has issued a directive affirming that consumers have the right to choose between prepaid and postpaid modes of electricity supply, stating that the selection of payment mode lies with the consumer and cannot be made mandatory by power distribution companies.The clarification came through an order issued by the Commission on Friday, addressing what it termed as an incorrect interpretation of provisions relating to smart meter implementation.UPERC said that while smart meters were installed for both existing and new consumers across the state’s discoms, the legal framework does not authorise compulsory migration to prepaid billing.The commission cited Section 47(5) of the Electricity Act, 2003, which provides that discoms cannot demand security deposits if a consumer opts for supply through prepayment meter. UPERC interpreted this provision as establishing prepaid metering as an option available to consumers rather than a mandatory requirement.The regulator also examined Rule 5(1) of the Electricity (Rights of Consumers) Rules, 2020, which stipulates that new connections should ordinarily be provided through smart prepaid or prepaid meters. However, the Commission observed that the same rule empowers the regulator to allow deviations where justified. Further, it referred to the Central Electricity Authority’s 2026 Metering Regulations, which mandate installation of smart meters but do not prescribe any specific payment mode.UPERC pointed out that on Dec 31, 2025, it consciously provided consumers with both prepaid and postpaid options. The Commission highlighted provisions stating that no security deposit would be charged for prepaid connections and that security deposits would be adjusted if an existing postpaid consumer voluntarily shifted to prepaid mode. These provisions, it said, clearly indicate the availability of both billing systems. It categorically said that the choice of selecting the payment mode rests with the consumer and directed all utilities to ensure compliance with this interpretation.Uttar Pradesh Rajya Vidyut Upbhokta Parishad chairman and Central Advisory Committee member Avadhesh Kumar Verma welcomed the order and said that it’s a significant order in the backdrop of ongoing smart metering rollout under the RDSS scheme, where advanced meters are being installed for both new and existing consumers across discoms.