Lucknow – Special Report: The controversy surrounding Uttar Pradesh’s smart prepaid electricity meter project has escalated into a public confrontation between the State Electricity Consumer Council and the UP Power Corporation Limited (UPPCL).
While the Consumer Council has demanded a CBI investigation into alleged irregularities in tender pricing and consumer billing, the Power Corporation insists that the process was conducted transparently and in compliance with regulatory norms.
Project Cost Discrepancy: ₹18,885 Crore vs ₹27,342 Crore
According to Avdhesh Kumar Verma, Chairman of the State Electricity Consumer Council, the Central Government had sanctioned the smart meter project at an estimated cost of ₹18,885 crore.
However, the tender awarded in Uttar Pradesh amounted to ₹27,342 crore—a difference of nearly ₹8,500 crore.
“Such a massive cost variation raises serious doubts and calls for a CBI or high-level probe,” Verma said.
He further alleged that consumers are being charged ₹6,016 per smart meter, whereas the same meters cost ₹2,610 in Maharashtra and ₹2,500 in Rajasthan.
“Why should consumers in Uttar Pradesh pay more than double? This is an undue financial burden on the public,” he added.
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₹13.2 Crore Already Collected from Consumers
Between September 10 and October 10, approximately 20,243 smart prepaid connections were installed, including 12,944 domestic single-phase meters.
The Consumer Council claims that around ₹13.20 crore has already been collected from consumers for installation—allegedly in violation of regulatory guidelines.
Power Corporation’s Stand: Rates Set as per ‘Cost Data Book’
In an official clarification issued on Saturday, UPPCL defended the pricing model, stating that rates were determined according to the 2019 Cost Data Book approved under the Electricity Supply Code, 2005.
“Earlier meters lacked communication modules, while the new smart prepaid meters include advanced data transfer technology,” the corporation said.
The statement also compared pricing across states:
- Assam: ₹6,490
- Haryana: ₹8,415
- Maharashtra: ₹5,210
UPPCL added that the conversion of old meters to smart meters under the Revamped Distribution Sector Scheme (RDSS) is free of cost for existing consumers.
Regulatory Action and Legal Proceedings
The Electricity Regulatory Commission has issued a contempt notice to UPPCL following a petition filed by the Consumer Council challenging the pricing mechanism.
The Council argues that similar tariff disputes in Haryana and Maharashtra are pending before courts, and Uttar Pradesh’s pricing must also undergo independent review and scrutiny.
Beyond the Numbers
The smart meter dispute has evolved from a pricing issue into a broader debate over transparency, accountability, and governance in the state’s power sector.
While the government projects smart prepaid meters as a step toward efficiency and reform, consumer groups allege financial irregularities and exploitation.
Bottom Line
The UP smart meter controversy has become a test of credibility and transparency for the state’s power sector.
A formal probe could reshape not only this project but also the future framework of energy reforms across India.
