In a significant New Year relief for electricity consumers across Uttar Pradesh, the state's power regulator has announced a massive reduction in the prices of smart prepaid meters. The Uttar Pradesh Electricity Regulatory Commission (UPERC), in its revised Cost Data Book (CDB) for 2025 released on Wednesday, has brought down the costs by more than half, offering substantial financial savings for new connections.
Substantial Price Cut and Consumer-Friendly Payment Plans
The regulator has now officially fixed the price of a single-phase smart prepaid meter at Rs 2,800 and a three-phase meter at Rs 4,100. This marks a steep reduction of over 53% and 64%, respectively, from the interim rates that were being charged by the Uttar Pradesh Power Corporation Limited (UPPCL) until now. Consumers applying for new single-phase connections have been given a flexible payment option: they can pay Rs 1,000 upfront and the remaining amount in 24 easy monthly instalments (EMIs) of Rs 84, or pay the full amount at once to avoid any interest charges.
This decisive move by UPERC comes after months of controversy and a series of reports that highlighted how UPPCL had made these meters mandatory for all new connections from September 10, 2023, while charging significantly higher, unapproved rates. Those interim rates were approximately Rs 6,016 for single-phase and Rs 11,341 for three-phase meters. Following UPERC's intervention, including issuing notices and holding hearings, the revised CDB was approved, bringing the rates down to the rationalized levels.
Refunds, Exemptions, and Broader Reforms
The sharp price correction is set to benefit more than 3.15 lakh consumers who had already been charged the higher, unapproved rate, amounting to an excess collection of about Rs 189.78 crore. UPERC has assured in writing that separate orders will be passed for the settlement of these excess charges. Power Minister AK Sharma had earlier stated in the UP Assembly that the extra amount charged would be either refunded or adjusted in the consumers' electricity bills.
Avadhesh Kumar Verma, a member of UPERC's Supply Code Review Panel Sub-Committee, welcomed the decision. He credited evidence showing that UPPCL's own discoms were procuring meters at Rs 2,500–Rs 2,630 per unit, which helped build a strong case against the earlier high rates. Importantly, the CDB 2025 clarifies that consumers will have the choice between prepaid and postpaid smart meters. For postpaid users, the security deposit system has been revised: consumers will now provide an additional deposit equivalent to 45 days of estimated usage, instead of the earlier two-month requirement.
In a major relief, the costs for developing and operating the crucial Advanced Metering Infrastructure (AMI) ecosystem will not be passed on to new consumers. These costs are already covered under the central government's Revamped Distribution Sector Scheme (RDSS).
Simplifying Connections and Aiding Vulnerable Groups
The CDB 2025, revised for the first time since 2019, introduces several other consumer-centric reforms. To speed up new connections, no estimates will be required for connections up to 300 metres in electrified areas for loads up to 150 kW, eliminating a major source of delay. Residents of undeveloped colonies will also benefit, as they will only pay metering charges, with infrastructure costs recovered through development levies.
Lifeline consumers (low-income households with minimal usage) have been offered special concessions. They can get a connection within 100 metres by paying Rs 500 upfront, with the balance recovered in 12 monthly instalments of Rs 45 added to their bills. They are also exempt from paying any security deposit.
Other key updates in the CDB include:
- Greater flexibility for farmers with Private Tubewells (PTW), who can now choose between different transformer options.
- Revised processing fees and security deposits for most consumer categories.
- A mandate for consumers to arrange their own armoured service cables for connections up to 50 kW, improving safety.
- An increase in the maximum load allowed on 11 kV voltage lines from 3 MVA to 4 MVA.
The new Cost Data Book will remain valid for two years, with an annual provision for escalation in material rates based on the Wholesale Price Index, though meter prices will be exempt from this annual revision.
