UP discoms refund over 92,000 consumers for smart meter overcharging
The Uttar Pradesh Electricity Regulatory Commission (UPERC) has disposed of a suo-moto petition concerning the recovery of smart prepaid meter costs from consumers taking new electricity connections, after the state distribution companies (Discoms) confirmed that refunds had been completed for all eligible consumers.
The Commission had initiated the proceedings after finding that Uttar Pradesh Power Corporation Limited (UPPCL) had instructed the Discoms to recover the cost of smart meters conforming to IS 16444 at rates that had not been approved by UPERC. The Commission held that such recovery was contrary to Section 46 of the Electricity Act, 2003. The Cost Data Book 2019 approved by UPERC provided for meters conforming to IS 15884, while the Discoms had independently recovered higher amounts from consumers for the smart meters required under the prevailing mandate.
Refund directive
In its order dated March 6, 2026, UPERC directed all Discoms to adjust the excess amounts recovered from consumers against their pending electricity bills. For prepaid consumers, the excess amount was to be reflected as a credit balance. The Commission fixed July 31, 2026 as the deadline for compliance and directed the Directors (Commercial) of the Discoms to appear personally at the subsequent hearing.
None of the Discoms submitted compliance reports by the stipulated deadline, and their Directors (Commercial) also failed to appear before the Commission at the hearing on August 11, 2026. Taking a stern view of the failure to comply with its directions, UPERC on August 12, 2026 ordered the Managing Directors of UPPCL and all the Discoms to submit compliance affidavits and remain personally present at the next hearing.
At the hearing held on August 20, 2026, UPPCL and the Discoms tendered unconditional apologies for the procedural lapses. They attributed the absence of the Directors (Commercial) to superannuation, health-related reasons and pre-approved leave, and submitted that the delay in compliance had neither been willful nor intentional.
UPPCL informed the Commission that 92,231 consumer accounts had been identified as eligible for refunds. The total comprised 84,587 single-phase connections and 7,644 three-phase connections, involving an aggregate refund of Rs 32.74 crore.
The refund exercise was reported to have been completed as of August 17, 2026, with the required credits processed across all five Discoms. UPPCL also assured the Commission that if any eligible consumers were inadvertently left out and such omissions were identified during subsequent audits, the corresponding amounts would be credited without requiring consumers to submit separate applications.
Prepaid meters
The Commission also considered the status of 907 STS prepaid meters that had been installed before its Tariff Order dated November 22, 2025. UPERC directed UPPCL and the Discoms to submit, within two months, a roadmap for replacing these meters with smart meters or DSDR meters, as applicable, in accordance with its earlier directive.
After taking the compliance submissions and refund exercise on record, UPERC disposed of the suo-moto proceedings. The Commission, however, made it clear that any irregularities identified at a later stage would be dealt with firmly.
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