Centre Urges States to Accelerate Smart Meter Rollout, Emphasizes Mandatory Installation Independent of Billing Mode

NEW DELHI: The central government has issued a stern directive to all states and Union Territories (UTs), urging them to significantly accelerate the installation of smart electricity meters across all consumer categories. The Ministry of Power clarified that the mandatory rollout of these advanced meters cannot be linked to the consumer’s preferred billing mode, whether prepaid or postpaid.

In a recent communication to state power departments, the ministry reiterated that the installation of smart meters is a statutory requirement under the Central Electricity Authority’s (CEA) Installation and Operation of Meters (Amendment) Regulations, 2026. This mandate applies specifically to areas where a functional communication network is already in place. States have been instructed to ensure these installations adhere strictly to the timelines prescribed by the Centre.

Slow Progress in Rollout and Extended Deadlines

Despite the ambitious targets set, the national rollout of smart meters has experienced considerable delays. Out of 20.3 crore meters approved under the Revamped Distribution Sector Scheme (RDSS), which was launched in July 2021, only 5.7 crore smart meters had been installed by June 30th. While the total number of functional smart meters nationwide stands higher at over 7.2 crore, this includes installations made under various other state-specific schemes. The initial deadline for the RDSS smart meter rollout was March 2026, but due to the slow pace, it has been extended by two years.

Benefits for Consumers and Utilities

The Ministry of Power underscored the multifaceted benefits of smart meters for both consumers and distribution utilities. For consumers, smart meters promise transparent and accurate billing, coupled with the convenience of real-time consumption monitoring. Furthermore, they are crucial in facilitating an ecosystem for energy transition and leveraging the advantages of time-of-day (ToD) tariffs. This functionality would enable consumers to shift their electricity consumption to non-peak hours, thereby leading to reduced electricity bills.

For distribution utilities, smart meters are anticipated to bring substantial improvements in enhanced energy accounting and operational efficiency. This translates to better management of the power grid, reduced technical and commercial losses, and improved financial health of the utilities.

Prepaid vs. Postpaid: A Crucial Distinction

The ministry also highlighted the particular advantages of prepaid smart meters, noting their convenience for consumers who can recharge in smaller denominations. For distribution utilities, prepaid meters offer the benefit of advance revenue collection and a significant reduction in working capital requirements. However, a notable trend indicates that most states are currently configuring smart meters for postpaid billing. This was recently exemplified in Uttar Pradesh, where the prepaid system was scrapped following widespread complaints regarding irregularities and excessive billing.

In its communication, the ministry firmly clarified that the installation of smart meters is mandated by statutory provisions, irrespective of the billing mode chosen. The billing mode, whether prepaid or postpaid, is essentially a functional configuration of the meter and does not negate the requirement for its installation. States and UTs have therefore been urged to continue and accelerate the rollout process without further delay to ensure that both consumers and distribution utilities can fully realize the benefits of smart metering.

Source: The Times of India