UP Smart Meter Refund: UPPCL To Return Rs 200 Crore Overcharged Amount Through Power Bills

The Uttar Pradesh Power Corporation Limited plans to refund overcharged smart meter amounts via bill adjustments, following regulator directions and a shift from prepaid to postpaid metering.

Consumers in Uttar Pradesh who paid extra for smart meters are set to receive refunds, with Uttar Pradesh Power Corporation Limited expected to start adjustments within this month. About five lakh domestic users are due more than Rs 200 crore after being billed above the approved smart meter cost.

The refund decision follows earlier changes to the smart prepaid meter scheme, which is now being shifted to postpaid mode. Along with this conversion, the corporation is preparing to return the excess meter charge, calculated at roughly Rs 3,200 for each single phase connection holder.

Smart meter overcharging: cost details and affected consumers

For single phase connections, consumers were charged Rs 6,016 per smart meter, while the later approved rate was only Rs 2,800. This gap created the excess collection that now needs to be returned. The higher amount continued to be taken from new applicants until regulatory directions came into force.

Smart meter pricing orders and regulatory action

In September 2025, the power corporation ordered that all new connections would use smart meters in prepaid mode. At that time, the Cost Data Book did not list a specific smart meter price. Even so, Rs 6,016 was collected for each single phase smart meter connection.

On 31 December 2025, the regulator issued a new Cost Data Book, fixing the smart meter rate at Rs 2,800. After this, the amount taken above the approved rate was identified as recoverable to consumers. By then, around five lakh new users had already paid the higher figure of Rs 6,016 each.

Smart meter refunds through electricity bills

The consumer council later approached the regulatory commission, challenging the extra smart meter charge. After hearing the petition, the commission ordered that the additional amount collected for meters must be refunded. The directions said refunds should begin from April, but implementation has been delayed.

Sources indicate the process is now moving, and refunds for smart meters are likely to start within the current month. A proposal has been prepared in line with the commission’s order and sent for approval at higher levels. Officials are working out the exact mode of credit for each eligible consumer account.

The corporation will return the extra smart meter amount by adjusting it in electricity bills rather than via separate payments. Officials have not yet decided whether the full sum will be credited in one cycle or split across instalments. The approved method will apply uniformly to all eligible users.

Smart meter shift from prepaid to postpaid

Earlier, when smart meters worked on prepaid mode, refunding would have been simpler through meter account recharge. Following directions from the Chief Minister, the prepaid system has now been abolished. All smart prepaid meters are being converted to postpaid, which means refunds will now reduce billed amounts instead of recharges.

Once the approval process ends and billing systems are updated, affected smart meter consumers should see the credited amounts reflected on bills. The refund will correspond to the difference between Rs 6,016 and Rs 2,800 for each single phase meter, matching the commission’s order and the revised Cost Data Book.