Thiruvananthapuram: The Central Electricity Authority has amended the policy for installing smart meters in electricity connections. The mandatory provision requiring prepaid smart meters, which necessitate advance payment, has been removed from the regulations. The right to decide whether a prepaid or postpaid meter is required now rests with the consumer. Kerala will be required to follow this revised policy when implementing smart meters in households.

Prepaid is a system where electricity is obtained by paying in advance, much like a mobile phone connection. Once the electricity equivalent to the paid amount is consumed, the connection will be disconnected. It will only be restored after a recharge. Postpaid, on the other hand, is the system where payment is made for the electricity already consumed, based on meter readings taken once a month or every two months.

The Electricity Act of 2008 stipulates that the right to choose a meter belongs to the consumer. However, the Centre had insisted on prepaid meters in the nationwide project to install smart meters with central assistance. In 2022, the Central Electricity Authority also introduced a mandatory provision that smart meters must be in prepaid mode. State Electricity Regulatory Commissions had questioned the legal validity of this provision, which was contrary to the Electricity Law.

In the amendment to the rules notified most recently on April 1, the Authority removed the requirement for "prepaid smart meters”. Instead, it now refers only to "smart meters”.

Opposition to prepaid meters

States that accepted the CAPEX (Capital Expenditure) model—which allows private agencies to install smart meters, issue bills and collect payments as suggested by the Centre—have already installed prepaid smart meters. Complaints are arising in these areas. One such complaint is that smart meters show inflated electricity consumption.

Prepaid meters in govt institutions

Kerala had not accepted the CAPEX model. Here, KSEB is installing the smart meters directly. In the first phase, this is being done in government institutions. These meters are capable of functioning in both prepaid and non-prepaid modes. However, as requested, the meters in government institutions are operating in prepaid mode. In households, the prepaid system can only be implemented according to the preference of the consumer.