Power Minister Manohar Lal Khattar informed the Lok Sabha on April 2, 2026, that the government is not forcing every citizen to install pre-paid electricity meters. During the Question Hour, he clarified that these meters are mainly intended to manage payment risks from serial defaulters. This statement aims to address public concerns regarding the compulsory adoption of meters similar to practices followed by private companies.
Who needs to install these pre-paid meters?
The primary focus for pre-paid meter installation remains on consumers who frequently fail to pay their electricity bills. For general consumers and farmers, the government has kept the system flexible to avoid any burden. There is an option for small recharges, such as for five or ten days, to help people manage their expenses easily. While the government wants to improve the financial health of power distribution companies, it is not imposing the pre-paid system on every household at this stage.
Key benefits and rules for smart meter consumers
- New connections with smart pre-paid meters do not require a security deposit from the consumer.
- Many distribution companies are offering a 2% rebate on recharges to encourage adoption.
- The system provides transparent billing, real-time monitoring, and SMS alerts for usage.
- Government establishments and commercial units are expected to transition to these meters by late 2025.
- Approximately 1.50 lakh crore rupees are earmarked for this smart metering scheme to reduce distribution losses.
The Central Electricity Authority regulates the mandatory requirements for smart metering in areas with communication networks. However, the Power Minister has clearly dismissed claims of government coercion for general consumers. For areas without network connectivity, the installation of such meters still requires approval from State Electricity Regulatory Commissions.
