The Ministry of Power, Government of India, has directed all States and Union Territories to accelerate and continue the installation of smart electricity meters across all categories of consumers. The directive, issued by Ankita Varshney, Under Secretary to the Government of India, focuses on the implementation of smart metering under the Revamped Distribution Sector Scheme (RDSS) and various state-level programmes.
The Ministry highlighted the provisions of the Central Electricity Authority (Installation and Operation of Meters) (Amendment) Regulations, 2026. Under these regulations, electricity supply must be provided through Indian Standards (IS)-compliant smart meters to consumers in areas where communication networks are available.
The Ministry clarified that smart meters are mandatory irrespective of whether consumers are placed under prepaid or postpaid billing. The payment mode is only a functional configuration and does not determine whether a smart meter is required.
Smart meters are expected to provide several benefits to consumers. They can support accurate and transparent billing while allowing consumers to monitor electricity consumption in real time. The technology also enables time-of-day tariffs, giving consumers an opportunity to shift electricity-intensive activities to non-peak periods and potentially reduce their electricity bills.
Under the RDSS, prepaid smart meters can also provide greater flexibility by allowing consumers to recharge their electricity accounts in smaller amounts according to their requirements.
For distribution companies, smart metering is expected to improve operational efficiency, energy accounting and real-time load management. The prepaid system can also support advance revenue collection, helping DISCOMs reduce working capital requirements and improve their financial position.
The Ministry has circulated the directive to power secretaries of all States and Union Territories, heads of state distribution companies, and senior officials of Rural Electrification Corporation (REC) and Power Finance Corporation (PFC). These stakeholders have been asked to coordinate implementation, prepare action plans and submit compliance reports.
The Central Government has reiterated that faster smart meter deployment is an important step towards modernising India’s electricity distribution system. The nationwide rollout is expected to strengthen distribution efficiency, improve consumer services and support the broader transformation of India’s power sector.
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