**Executive Summary**
This document is a response to Lok Sabha Starred Question No. 178, answered on December 11, 2025, regarding the impact of installing smart prepaid meters. It outlines the progress of smart meter installation across the country, including plans under the Revamped Distribution Sector Scheme (RDSS), and explains the benefits and mitigation measures implemented to address consumer concerns. The response includes statements to the House regarding the Government's position on prepaid meters and its plans to improve consumer experience.
**Key Points / Main Content**
* **Smart Meter Installation:**
* 4.93 Cr smart meters have been installed nationwide, with 1.6 Cr functioning in prepaid mode.
* RDSS has sanctioned 20.33 Cr smart meters (prepaid mode) for consumers, feeders, and DTs, based on proposals from states/distribution utilities.
* 3.58 Cr smart meters have been installed under RDSS; the remainder are installed by States under their own plans.
* **Government's Position:**
* Postpaid service was traditionally the default.
* Deployment of smart prepaid meters has been undertaken, prioritizing Government establishments, commercial, industrial, and high-load consumers.
* **Consumer Benefits of Prepaid Meters:**
* Convenient recharge with small amounts.
* Emergency credit to prevent disconnection.
* Consumption tracking.
* Error-free billing.
* **Distribution Utility Benefits:**
* Improved billing and collection efficiency.
* Automatic Energy accounting.
* Improved Load forecasting.
* Data analytics for demand-side management.
* Facilitation of an enabling ecosystem for energy transition.
* **Mitigation Measures/SOPs:**
* Incentives for prepaid meter installation (rebate in bill).
* No penalty based on maximum demand.
* Mechanism for recovery of past arrears in easy installments.
* Installation of check meters for enhanced accuracy.
* Smart meter mobile apps for tracking consumption and easy recharge.
* Advance alerts for balance and emergency credit.
**Impact Analysis**
**Stakeholder: Consumers**
* **Impact**: Installation of smart prepaid meters directly impacts their electricity consumption, billing, and payment methods. Some initial challenges were experienced due to a lack of awareness, which the government has addressed through SOPs and advisories.
* **Action Required**: Consumers may need to adapt to the prepaid system, utilize mobile apps for tracking, and take advantage of available incentives and alert systems.
**Stakeholder: Distribution Utilities**
* **Impact**: Smart prepaid metering improves billing and collection efficiency, facilitates better load management, and enables data analytics.
* **Action Required**: Distribution Utilities need to implement smart metering infrastructure, integrate data analytics, and ensure seamless operation of the prepaid system.
**Stakeholder: Government (Ministry of Power)**
* **Impact**: The Government is responsible for overseeing the implementation of smart metering, addressing consumer concerns, and ensuring the transition to a more efficient energy system.
* **Action Required**: The Ministry must continue to monitor the progress of smart meter installation, refine SOPs based on feedback, and promote consumer awareness.
Key Entities Referenced
Revamped Distribution Sector Scheme (RDSS): A scheme aimed at improving the operational efficiency and financial sustainability of distribution companies (DISCOMs) through various interventions, including smart metering.
Ministry of Power: The Indian government ministry responsible for the development of electrical power.
Smart Prepaid Meters: Electric meters that allow consumers to pay for electricity in advance and monitor their consumption.
GOVERNMENT OF INDIA
MINISTRY OF POWER
LOK SABHA
STARRED QUESTION NO.178
ANSWERED ON 11.12.2025
IMPACT OF INSTALLATION OF SMART PREPAID METERS
†*178. MRS RUCHI VIRA:
Will the Minister of POWER
be pleased to state:
(a) whether the decision of the Government to install smart prepaid meters is
affecting every household;
(b) if so, the details thereof along with the corrective steps proposed to be taken
by the Government to solve the practical difficulties faced by consumers; and
(c) whether the Government proposes to offer postpaid services in the best
interests of consumers and if so, the details thereof?
A N S W E R
THE MINISTER OF POWER
(SHRI MANOHAR LAL)
(a) to (c): A Statement is laid on the Table of the House.
*******STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (c) IN RESPECT OF LOK
SABHA STARRED QUESTION NO. 178 FOR REPLY ON 11.12.2025 REGARDING
IMPACT OF INSTALLATION OF SMART PREPAID METERS
(a) to (c):
I. A total of 4.93 Cr smart meters have been installed across the country with 1.6
Cr smart meters functioning in prepaid mode. Under the Revamped Distribution
Sector Scheme (RDSS), smart metering works for 19.79 cr consumers in prepaid
mode, 2.11 lakh feeders and 52.53 lakh DTs, totaling 20.33 Cr smart meters, have
been sanctioned based on the proposal submitted by the States/distribution
utilities and 3.58 Cr smart meters have been installed. The balance smart meters
have been installed by States under their State plans/ other schemes.
II. Post paid service has traditionally been the default mode. However, considering
the benefits offered to both consumers and distribution utilities, deployment of
smart prepaid meters has been undertaken under the Revamped Distribution Sector
Scheme (RDSS). The installation of prepaid smart meters is being prioritised for
Government establishments, commercial, industrial and high-load consumers and
subsequently for other consumers based on demonstration of benefits.
The following benefits have been envisaged for consumers:
i. Convenience of recharge with small recharges
ii. Emergency credit in meter to avoid disconnection on zero balance
iii. Tracking of consumption
iv. Error free billing
Besides the consumers, prepaid smart metering helps improve the billing and
collection efficiency of the Distribution Utility while providing benefits like
Automatic Energy accounting, improved Load forecasting, use of data analytics for
demand side management and facilitate an enabling ecosystem for energy
transition. The benefits, accruing to the distribution utilities, eventually gets
passed on to the consumers in the form of better services and lower costs.III. Initially, there were some challenges in the implementation of smart metering
works due to inadequate consumer awareness regarding the benefits of smart
meters. To improve consumer engagement and enhance confidence, the Ministry
has issued various advisories/Standard operating Procedures (SoPs). These
include:
Incentivising consumers for prepaid meter installation through rebate in bill;
No penalty on consumer based on maximum demand recorded by smart
meter;
Mechanism for recovery of past arrears in easy instalments;
Installation of check meters for enhancing confidence in accuracy of smart
meters.
Smart meter mobile apps are being made available to allow for regular
tracking of consumption of electricity and for easy recharge;
Advance alerts for balance and emergency credit to consumers
*****