Uttar Pradesh Electricity Regulatory Commission (UPERC) orders UPPCL to refund excess smart meter charges

LUCKNOW: The Uttar Pradesh Electricity Regulatory Commission (UPERC) has directed Uttar Pradesh Power Corporation Limited (UPPCL) and state power distribution companies (discoms) to refund or adjust excess amounts recovered from consumers towards smart prepaid meters installed for new electricity connections.

The order, uploaded in the public domain on Saturday, mandates all discoms to submit a detailed compliance report by July 31.UPERC chairman Arvind Kumar and member Sanjay Kumar Singh took suo motu cognisance of the issue after finding that UPPCL had instructed discoms to levy charges for smart prepaid meters which were not approved by the regulator. According to the order, UPPCL was recovering Rs 6,016 for single-phase meters and Rs 11,341 for three-phase meters as per the 2019 Cost Data Book (CDB), even though the newly introduced AMI-compatible smart meters did not have an approved rate at the time.

Since Sept 10, 2025, when smart prepaid meters were made mandatory for new connections, around 3.67 lakh consumers in Uttar Pradesh are estimated to have been affected. The immediate refund liability is pegged at around Rs 127 crore. However, as UPPCL had been charging the unapproved amount from new consumers since the technology rollout began in late 2024 and early 2025, the total refund is expected to rise substantially.

Since Oct last, TOI has been running a series highlighting the anomalies related to smart prepaid meters and the charges being levied on new consumers.UPERC observed that recovery of unapproved costs violated the Electricity Act 2003 and the prevailing regulatory framework. The commission termed the action impermissible in a regulated regime and stated that utilities cannot impose charges without explicit approval from the regulator.The commission subsequently approved revised rates for smart meters in a new CDB issued on Dec 31, 2025. Under the revised rates, the cost of a single-phase smart meter (AMI compatible) with meter box was fixed at Rs 2,800, while that of a three-phase smart meter (AMI compatible) was approved at Rs 4,100.In its order, UPERC noted: “Consumers had been charged significantly higher amounts than the approved rates. It detailed excess recovery of Rs 3,216 per single-phase connection and Rs 7,241 per three-phase connection.”The commission has directed UPPCL that the excess amount be adjusted against pending electricity bills of affected consumers. “If any balance remains after such adjustment, it must be credited in subsequent bills starting April 1 until the entire excess amount is refunded. For prepaid consumers, the excess amount must be reflected as credit in their accounts,”the order stated.In cases where the smart meter cost was being recovered in instalments, the commission has ordered that instalments must stop once the admissible amount has been recovered.

Any excess already collected must be credited to the consumer’s account.Avadhesh Kumar Verma, member of UPERC supply code review panel sub-committee and chairman of the UP Rajya Vidyut Upbhokta Parishad, said, “UPPCL had been levying unapproved charges since the initial rollout phase. More than 5 lakh consumers would receive a refund of over Rs 200 crore.”He added, “TOI report differentiating between IS 15884 and IS 16444 meters helped build the case against illegal recovery. This differentiation was again mentioned in UPERC latest order. Additionally, the UPRVUP presented evidence to UPERC showing that UPPCL’s own discoms were procuring smart prepaid meters at Rs 2,500–Rs 2,630 per unit.”