Policy Brief: UP Rolls Back Smart Prepaid Meter Plan, Shifts Entire System to Postpaid Billing

The government of Uttar Pradesh has announced a major change in its electricity billing system by discontinuing the smart prepaid meter arrangement and converting all existing systems into postpaid mode. The decision has been confirmed by the state’s Energy Minister, marking a significant policy reversal under the RDSS scheme. Under the revised system, all smart meters installed earlier under the Revamped Distribution Sector Scheme (RDSS) will now function in postpaid mode with immediate effect. From June onward, consumers will receive electricity bills based on postpaid billing only, and the billing cycle will be standardized, with bills issued by the 10th of every month. Officials also stated that all new electricity connections in the state will now be provided only under the smart postpaid billing system, effectively ending the expansion of prepaid meter installations. The decision comes after widespread public complaints from multiple districts across Uttar Pradesh regarding the prepaid smart meter system. Consumers had reportedly raised concerns over unexpectedly high electricity charges, frequent disconnections after recharge, and technical issues affecting supply continuity. In several cases, protests were reported where residents expressed dissatisfaction with the functioning of prepaid meters. Following repeated feedback from the public and administrative reviews at both district and state levels, the Chief Minister’s office directed a reassessment of the system. After a series of consultations, the Energy Department has now decided to revert to the postpaid model to ensure smoother billing and better consumer convenience. Officials have clarified that the aim is to improve reliability, reduce consumer grievances, and streamline the billing process while maintaining transparency in electricity usage. The rollback marks a significant shift in Uttar Pradesh’s power distribution reforms and is expected to impact millions of electricity consumers across the state.