UPERC Slashes Smart Prepaid Meter Costs, Brings Major Relief to Power Consumers

Lucknow: In a significant New Year relief for electricity consumers in Uttar Pradesh, the Uttar Pradesh Electricity Regulatory Commission (UPERC) has sharply reduced the cost of smart prepaid meters in its revised Cost Data Book (CDB) 2025, released on Wednesday.

The move follows months of controversy over unapproved charges levied by power distribution companies and is expected to benefit more than 3.15 lakh consumers across the state.

Under the revised framework, UPERC has fixed the cost of single-phase smart prepaid meters at ₹2,800 and three-phase meters at ₹4,100—representing reductions of over 53% and 64%, respectively, from the interim rates earlier charged by Uttar Pradesh Power Corporation Limited (UPPCL).

New applicants opting for single-phase connections may either pay the amount upfront or choose an instalment option, paying ₹1,000 initially and the remaining amount in 24 monthly instalments of ₹84. Consumers paying the full amount upfront will not incur interest.

AMI Costs Excluded from Consumer Burden

Crucially, UPERC has clarified that costs associated with the development and operation of the Advanced Metering Infrastructure (AMI)—the backbone of the smart metering system—will not be passed on to consumers. These expenses are already covered under the central government’s Revamped Distribution Sector Scheme (RDSS).

The regulatory intervention follows a series of reports highlighting that UPPCL had made smart prepaid meters mandatory for all new electricity connections from September 10, 2025, while charging rates that were neither approved nor notified—approximately ₹6,016 for single-phase meters and ₹11,341 for three-phase meters.

UPERC issued notices and conducted hearings before approving the revised Cost Data Book. According to regulatory estimates, over ₹189.78 crore was collected from consumers at the higher rates, including more than ₹101 crore recovered in just 112 days up to December 31. The Commission has assured that separate orders will be issued for the settlement of excess charges.

Earlier this month, Power Minister A.K. Sharma told the Uttar Pradesh Assembly that any excess amount charged for smart prepaid meters would be refunded or adjusted against future electricity bills.

Consumer Choice and Revised Security Deposits

Welcoming the decision, Avadhesh Kumar Verma, member of UPERC’s Supply Code Review Panel Sub-Committee and Chairman of the Uttar Pradesh Rajya Vidyut Upbhokta Parishad, said the revised CDB makes it clear that consumers will have the option to choose between prepaid and postpaid smart meters.

Under the new rules, the minimum security deposit for postpaid consumers will remain as specified in Chapter 4 of CDB 2025. However, all consumers will now be required to provide an additional security deposit equivalent to 45 days of estimated electricity consumption, replacing the earlier requirement of two months’ coverage.

First Comprehensive Revision Since 2019

Revised for the first time since 2019, the CDB 2025 lays out a comprehensive and standardised framework for all charges that discoms are permitted to levy. These include processing fees, security deposits, supply-affording charges, metering costs, material expenses, labour costs, and overheads.

UPERC said the update was necessary to reflect changes in material and labour costs over the past six years and to ensure transparency and uniformity in consumer billing.

Simplified Connections and Infrastructure Relief

One of the most consequential reforms is the introduction of fixed supply-affording charges for loads up to 150 kW in electrified areas. Under the revised rules, no individual estimates will be required for connections up to 300 metres—streamlining the process and reducing delays in releasing new connections.

Residents of undeveloped or unelectrified colonies will also benefit, as infrastructure costs will now be recovered through development charges, leaving such consumers to pay only metering-related expenses. Similar relief has been extended to consumers in multi-storeyed buildings with multipoint connections.

Special Relief for Lifeline and Agricultural Consumers

Lifeline consumers—typically low-income households with minimal electricity usage—have been granted additional relief. For distances up to 100 metres, they can pay ₹500 upfront, with the remaining cost recovered through 12 monthly instalments of ₹45 added to electricity bills. They have also been exempted from paying any security deposit.

Farmers using private tubewells have been allowed greater flexibility, with the option to choose between a three-phase 16 kVA transformer or a single-phase 10 kVA transformer. The shared transformation cost for users connected to a common 25 kVA transformer has been retained at 33.3%, rejecting an earlier proposal to raise it to 50%.

Technical and Capacity Enhancements

To improve safety, consumers seeking connections up to 50 kW (56 kVA) will now arrange armoured service cables themselves, except in exceptional circumstances. The revised CDB also updates schedules for underground metering cables in line with earlier provisions.

In line with amendments to the Electricity Supply Code, the maximum load permitted on 11 kV voltage has been increased from 3 MVA to 4 MVA. New schedules have also been introduced for three-phase connections at 3 kW and 4 kW, reflecting changes under the Tariff Order issued on November 22, 2025.

The revised Cost Data Book will remain valid for two years, though UPERC has allowed annual escalation based on changes in the Wholesale Price Index (WPI), applicable only to material costs and excluding meter prices.