LUCKNOW: The Union government on Thursday clarified in Parliament that smart prepaid electricity meters are optional and based on consumer choice, and not compulsory under the Electricity Act, 2003.
The clarification was given by Union power minister Manohar Lal Khattar in a written reply in the Lok Sabha to questions raised by Nagina MP Chandra Shekhar and Hanuman Beniwal (Nagaur, Rajasthan). Responding to the questions, the govt said section 47(5) of the Electricity Act, 2003 explicitly empowers consumers to opt for prepaid meters voluntarily. Under this provision, when a consumer requests a prepaid meter, the electricity distribution licensee is obligated to provide it without charging any security deposit.
The minister underlined that the provision does not mandate compulsory installation of prepaid meters for existing consumers.The Ministry of power acknowledged that prepaid smart meters are being promoted nationally as part of broader power sector reforms, particularly under the Revamped Distribution Sector Scheme (RDSS) launched in July 2021. The scheme aims to improve the quality, reliability, and financial health of power distribution companies (discoms).
However, the government stressed that its approach is to incentivise adoption rather than enforce it.The govt informed the house that over 6.13 crore smart meters have been installed across the country under various central and state schemes, of which around 2.25 crore are operating in prepaid mode. States have proposed nearly 20 crore prepaid smart meters under RDSS, alongside meters for distribution transformers and feeders.In Uttar Pradesh, the power corporation has installed over 84.5 lakh smart meters, out of which 75.5 lakh are smart prepaid meters.The Uttar Pradesh Rajya Vidyut Upbhokta Parishad has welcomed the union govt’s clarification. Avadhesh Kumar Verma, the chairman of consumer forum and UPERC advisory committee member, said, “With this clarification, the PCL has now responsibility to seek consent from consumers before converting their smart meter into prepaid smart meter. They have already converted 75.5 lakh meters into smart prepaid meters without consent.”Notably, in Uttar Pradesh, around 53 lakh smart prepaid meter consumers owe more than Rs 1,670 crore as arrear.
