Lucknow, May 5, 2026 — In a major policy reversal, the Uttar Pradesh government has decided to discontinue the prepaid mode for all smart electricity meters and convert them to postpaid billing. The move, announced today, aims to address widespread consumer complaints and ease billing hassles for domestic users across the state.
Under the new directive issued by the state energy department, all existing smart meters — approximately 83 lakh out of the total 86.5 lakh installed — will now function in postpaid mode. Consumers will be billed monthly for electricity consumed from the 1st to the last day of each month, similar to the traditional system. Bills will be generated and shared via SMS or WhatsApp within 10 days, followed by a standard payment window.
The government has also paused further installations or replacements of smart meters in prepaid mode. New connections will follow the postpaid system, aligning with updated guidelines from the Central Electricity Authority (CEA) issued in April 2026, which made prepaid metering optional rather than mandatory.
Reasons Behind the Rollback
The decision comes after months of feedback from consumers, particularly small domestic users with 1kW and 2kW connections. Many reported difficulties with recharges, sudden disconnections due to low balance, and technical glitches in the prepaid smart meters. Daily-wage families found the system inconvenient, as even minor delays in recharging led to power cuts at inconvenient times.
Protests and complaints highlighted issues such as lack of prior consent during meter conversions, occasional inaccurate readings, and overall complexity compared to the simpler postpaid system. The prepaid model, originally promoted under the Revamped Distribution Sector Scheme (RDSS) to reduce theft and discom losses, faced significant ground-level resistance in Uttar Pradesh.
Relief for Consumers
With the shift to postpaid, consumers will no longer need to monitor balances or recharge frequently. Outstanding dues from earlier periods can be paid in installments, and disconnection rules for small consumers have already been relaxed. Smart meters will continue to provide benefits like remote reading, accurate consumption tracking, and better monitoring for distribution companies, but without the prepaid restrictions.
Energy officials have urged consumers facing any issues with their meters to contact local electricity offices or the concerned discom. Official updates from UPPCL and UPERC are expected to provide further implementation details shortly.
This consumer-centric decision by the Yogi Adityanath government reflects a responsive approach to public feedback while retaining the technological advantages of smart metering. It is likely to bring relief to millions of households across Uttar Pradesh.
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