Consumer Choice First: Prepaid Smart Meters Can’t Be Installed Without Consent, Govt Clarifies

A significant clarification has been issued for electricity consumers across India regarding the installation and billing mode of smart meters. Union Power Minister Manohar Lal Khattar stated in a written reply in the Lok Sabha that the choice between prepaid and postpaid smart meters rests entirely with the consumer.

According to the provisions of the Electricity Act, 2003, distribution companies can provide a prepaid electricity connection only after obtaining explicit consent from the consumer. If such consent is not provided, the electricity utility is obligated to continue with or install a conventional postpaid meter.

The clarification comes at a time when the installation of smart meters is being expanded rapidly across several states, including Uttar Pradesh. In recent months, consumer groups have raised concerns that prepaid smart meters were allegedly being installed without clearly informing residents or obtaining their approval.

These groups have urged authorities to ensure transparency in the installation process and to properly inform consumers about their options before switching the billing system.

The government has also highlighted some benefits of prepaid smart meters. These include real-time monitoring of electricity consumption and the removal of security deposit requirements for consumers who voluntarily choose prepaid connections.

However, officials have reiterated that consumer preference remains the key factor. Consumers are advised to clearly communicate their choice in writing at the time of meter installation to ensure their consent is properly recorded and their rights remain protected.