Uttar Pradesh Energy Minister A.K. Sharma on Friday ordered all five state distribution companies to stop prepaid smart meter installations with immediate effect, freezing a rollout that had reached over 75 lakh households across the state.
Prepaid smart meters will be discontinued with immediate effect. No consumer will be forced to use a prepaid meter.
A.K. Sharma, Energy Minister, Uttar Pradesh · Press statement · 08 May 2026
The directive covers PVVNL, DVVNL, MVVNL, PuVVNL and KESCO — the five discoms that had deployed meters across Lucknow, Agra, Varanasi, Kanpur, Prayagraj and Meerut under the Revamped Distribution Sector Scheme (RDSS).
The RDSS, launched by the Union Ministry of Power in July 2021 with a ₹3,03,758 crore national outlay, had designated Uttar Pradesh as a priority state. Grant disbursements are tied to smart meter deployment milestones, placing the state’s funding position at immediate risk.
Why the order was issued
Consumer complaints accumulated through 2025 and into 2026. Residents in Lucknow and Kanpur reported overnight power cuts when prepaid balances hit zero. Farmers in Agra and Mathura flagged disruptions to irrigation pump connections tied to prepaid systems. The Samajwadi Party (SP) had demanded a rollback for over 12 months, citing consumer hardship.
Samajwadi Party state president Shyam Lal Pal welcomed the order, calling it a reversal driven by public pressure. The Bharatiya Janata Party government had previously defended prepaid meters as a tool to reduce aggregate technical and commercial losses, which stood at 18.4 per cent for UP discoms in FY2025.
What it means for existing meter holders
Sharma’s order directs all five discoms to prevent supply disruption for households already carrying prepaid meters. Those consumers will not be required to top up balances to maintain power. Publicly reported smart meter procurement contracts in UP range from ₹5,200 crore to ₹7,593 crore for individual awards alone — all now face uncertain status.
The order does not formally cancel UP’s RDSS targets. The state government has not clarified how it will manage the scheme’s deployment-linked funding conditions with the Union Ministry of Power.
ℹ️ Background: RDSS and prepaid meters in UP
- RDSS launched July 2021; UP received the largest smart meter target allocation among all states.
- Prepaid meters cut power automatically when a consumer’s preloaded balance reaches zero.
- UP’s five discoms deployed meters across Lucknow, Agra, Varanasi, Kanpur, Prayagraj and Meerut before Friday’s halt.
- RDSS grant tranches are conditional on states meeting smart meter installation milestones.
What happens next
The UP Energy Department has already issued a formal government order converting existing prepaid connections to postpaid mode, giving Sharma’s directive immediate legal standing. The state must now submit a revised RDSS compliance roadmap to the Union Ministry of Power ahead of the scheme’s next review, scheduled for June 2026.
FAQ
Will existing prepaid meter users face power cuts if they don't recharge?
Does this halt affect RDSS funding for Uttar Pradesh?
Which districts had prepaid smart meters installed?
