A crucial meeting to review Uttar Pradesh's electricity supply code turned into a battleground over the cost of smart prepaid meters on Thursday. The session, chaired by Uttar Pradesh Electricity Regulatory Commission (UPERC) chairman Arvind Kumar, saw state power utility officials locking horns with consumer rights advocates over what constitutes a fair price for the new meters.
The Core Conflict: Sky-High Demands vs Ground Reality
The confrontation centered on the draft rates proposed by the commission's cost data book, which suggested Rs 2,800 for a single-phase meter and Rs 4,100 for a three-phase meter. Representatives from the Uttar Pradesh Power Corporation Limited (UPPCL) and its managing director, Pankaj Kumar, argued these rates were unviably low. They pushed for significantly higher prices, demanding up to Rs 8,000 for single-phase and Rs 13,000 for three-phase smart prepaid meters.
To support their claim, UPPCL officials cited meter costs in other states like Assam, Maharashtra, Tamil Nadu, and West Bengal, where prices reportedly ranged between Rs 5,200 and Rs 6,325. They insisted the draft figures were unrealistic.
Consumer Advocate Fires Back with Purchase Orders
Avadhesh Kumar Verma, chairman of the Uttar Pradesh Rajya Vidyut Upbhokta Parishad (UPRVUP), launched a strong rebuttal. He presented compelling evidence, including purchase orders, showing that the power utility itself procures single-phase meters for just Rs 2,630 to Rs 2,800. Verma argued that the higher rates quoted from other states often bundle in infrastructure costs, which should not be loaded onto consumers.
"If consumers are made to pay for infrastructure, they effectively become part-owners of the utility and should be entitled to equity returns," Verma contended. He provided a striking comparison, noting that in Rajasthan, both single and three-phase meters cost only Rs 2,500. He further referenced the Government of India's earlier cap of Rs 6,000 for combined meter and infrastructure costs, asserting that a standalone smart meter should not exceed Rs 2,500 to Rs 3,500.
Broader Allegations of Inflated Costs
The debate widened beyond meters. Verma flagged what he called inflated rates for essential equipment in the draft cost data book. He cited the example of a 250 kVA transformer listed at Rs 6.51 lakh, while the actual purchase price, according to him, was Rs 5.56 lakh—an excess of nearly Rs 95,000.
Similar discrepancies were alleged for cables, poles, and smaller transformers. These inflated figures persisted, Verma claimed, even though the draft already accounted for contingencies, tools, installation fees, and GST.
Social Equity and Connection Policies Questioned
Verma also raised concerns about social exclusion in the proposed policies. He warned that a rule restricting one-time connections for 150 kW/300-meter links to already electrified areas would disproportionately hurt the rural poor and farmers, while potentially benefiting luxury commercial establishments.
Advocating for inclusive measures, he demanded a 33% discount on new connections for rural women and a 15% discount for urban women.
The high-stakes meeting included key figures like UPPCL chairman Ashish Kumar Goel and representatives from private distributors Torrent Power and Noida Power Company. Following the heated discussions, UPERC chairman Arvind Kumar told reporters that a detailed discussion on the draft cost data book was held and the commission would soon release an approved version based on rational findings.
