The Uttar Pradesh Electricity Regulatory Commission (UPERC) has clarified that consumers in Uttar Pradesh have the right to choose between prepaid and postpaid smart electricity meters, rejecting any interpretation that makes prepaid mode compulsory.A smart meter (HT File Photo)In a letter issued to Uttar Pradesh Power Corporation Limited (UPPCL) here on Friday, the commission said the provisions of the Electricity Act, 2003, the Electricity (Rights of Consumers) Rules, 2020, and the Cost Data Book issued on December 31, 2025 collectively allow installation of smart meters in both payment modes.The Commission noted that smart meters were being installed under the Revamped Distribution Sector Scheme (RDSS) across all major discoms in the state through Advanced Metering Infrastructure Service Providers (AMISPs).It said Section 47(5) of the Electricity Act clearly provides that no security deposit can be demanded if a consumer opts for a prepaid meter, indicating that prepaid mode is a consumer choice and not mandatory.UPERC further clarified that while central rules permit smart prepaid meters, they also empower the Commission to allow postpaid mode. The regulator cited provisions in the Cost Data Book stating that no security will be charged for prepaid connections, while security deposits of existing postpaid consumers shifting to prepaid mode must be adjusted in subsequent bills.The Commission directed all power utilities to ensure compliance accordingly.Welcoming the order, UP Rajya Vidyut Upbhokta Parishad chairman Avdhesh Kumar Verma termed it a consumers’ victory.