The Indian power ministry has asked all states and union territories to accelerate installation of smart electricity meters across all consumer categories, clarifying that the mandatory rollout cannot be linked to the billing mode — prepaid or postpaid — of the meter. According to Business Today, the ministry's communication to states says installation is mandatory under the Central Electricity Authority's Installation and Operation of Meters (Amendment) Regulations, 2026, in areas where a communication network is available. States have been asked to ensure meters are installed within the timelines prescribed by the Centre.
RDSS rollout lags target
The scale of the deployment gap is visible in the numbers reported by Business Today. Of the 20.3 crore meters approved under the Revamped Distribution Sector Scheme (RDSS), launched in July 2021, only 5.7 crore had been installed as of June 30. The total number of functional smart meters, however, stands at over 7.2 crore, as several states have also installed meters under different schemes. The initial deadline under RDSS was March 2026; it was extended by two years due to slow rollout.
| Metric | Figure |
|---|---|
| Meters approved under RDSS | 20.3 crore |
| Meters installed under RDSS till June 30 | 5.7 crore |
| Total functional smart meters | over 7.2 crore |
| Initial RDSS deadline | March 2026 |
| Timeline extension | +2 years |
Why the ministry wants faster adoption
In its communication to states, the power ministry said smart meters deliver benefits to both consumers and distribution utilities:
The installation of smart meters provides for transparent and accurate billing for consumers with facility of consumption monitoring. It also facilitates an eco-system for energy transition and leveraging the benefits of time of day tariff which would enable in shifting loads to non-peak timings thereby reducing electricity bills.
For distribution utilities, it would help in enhanced energy accounting, and operational efficiency.
The ministry also highlighted the convenience of prepaid smart meters, which allow consumers to recharge in small denominations, while helping distribution utilities with advance revenue collection and reducing working capital requirements, according to Business Today.
Prepaid versus postpaid billing
Most states, however, are configuring smart meters for postpaid billing. Uttar Pradesh recently scrapped the prepaid system following complaints of irregularities and excessive billing, Business Today reported. The ministry clarified that installation of smart meters is mandated under statutory provisions irrespective of the billing mode, which is essentially a functional configuration. It has asked states and union territories to continue and accelerate the rollout so that the benefits of smart metering are realised by both consumers and distribution utilities.
What this means for technology procurement
The remaining RDSS backlog is substantial: based on the figures in the report, 14.6 crore of the approved 20.3 crore meters were still to be installed at the end of June. Because the 2026 regulations make installation mandatory only where a communication network is available, network availability is a gating factor for deployment. For utilities, prepaid configurations can lower working capital requirements; for technology vendors and system integrators working with state distribution companies, the functional meter count of over 7.2 crore indicates active deployments beyond RDSS-funded projects. The ministry's directive asks states to continue and accelerate rollout so that the benefits of smart metering are realised by both consumers and distribution utilities.
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