The Uttar Pradesh Electricity Regulatory Commission (UPERC) has concluded its suo-moto proceedings over the unauthorized recovery of excess charges from consumers for smart prepaid electricity meters. The Commission disposed of Petition No. 73SM of 2026 on August 27, 2026, after Uttar Pradesh Power Corporation Limited (UPPCL) and its distribution companies completed the refund and adjustment process.
According to the final data submitted to the Commission, a total of ₹32.74 crore was credited back to 92,231 eligible electricity accounts. The amount included ₹27.20 crore refunded to 84,587 single-phase connections and ₹5.54 crore to 7,644 three-phase connections.
The matter arose after UPERC found that UPPCL had directed Discoms to recover charges for smart meters conforming to IS 16444 standards using the rates specified for single-phase prepaid meters in the 2019 Cost Data Book. The Commission observed that such recovery was not authorized and was contrary to Section 46 of the Electricity Act, 2003, which requires prior regulatory approval for recovering costs associated with supplying electricity.
UPPCL had argued that the installation of smart prepaid meters was supported by central government policies, including guidelines issued by the Central Electricity Authority and the Electricity (Rights of Consumers) Rules. It also explained that an interim charge of ₹6,016 had been adopted because the Cost Data Book had not been revised since 2019.
UPERC, however, directed the utilities through its March 6, 2026 order to return any excess amount collected from consumers. The Commission instructed the Discoms to provide the adjustment through pending electricity bills or direct bill credits from April 1, 2026.
The proceedings also highlighted delays in compliance and submission of information by the utilities. At the August 11 hearing, UPERC expressed concern over missed filing deadlines and the absence of Commercial Directors. Following the Commission’s directions, senior officials, including UPPCL Managing Director Nitish Kumar and the Managing Directors of PVVNL, PuVVNL, MVVNL, DVVNL and KESCO, attended the August 20 hearing. The officials submitted unconditional apologies for the procedural delays.
UPPCL reported that 93,138 connections identified through the Jhatpat Portal were examined. Of these, 907 STS prepaid meter accounts were found not to have been overcharged and were excluded. The remaining 92,231 accounts received the applicable credits. PVVNL recorded refunds of ₹9.37 crore, while MVVNL accounted for ₹9.25 crore.
UPERC also directed UPPCL to prepare, within two months, a roadmap for replacing existing legacy keypad/token-based STS meters with smart or DSDR meters without imposing the replacement cost on consumers.
The Commission warned that any irregularities identified in future audits would be dealt with strictly. UPPCL has also committed to automatically crediting any eligible accounts that may have been missed during the refund exercise.
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