Tariffs, Price Drivers and 2026 Rules
Smart prepaid electricity meters in India - RDSS rollout, recharge and your rights
Why DISCOMs are replacing meters with smart prepaid meters under RDSS, how recharge and disconnection work, and what to check if your bill changes after the swap.
Smart prepaid meters are being installed across India mainly under the Revamped Distribution Sector Scheme (RDSS), a Ministry of Power scheme launched in 2021 to cut DISCOM losses. A smart meter sends readings to the DISCOM automatically; in prepaid mode, you recharge a balance, as with a mobile phone, and your consumption and charges are deducted from it, usually daily. The tariff does not change because of the meter: you still pay your SERC's slab rates, fixed charges, surcharges and duty. What changes is when you pay, how quickly a low balance can lead to disconnection, and how accurately your consumption and maximum demand are recorded.
Part of how electricity tariffs are set in India.
RDSS in brief
| Feature | What is known |
|---|---|
| Launched | 2021, by the Ministry of Power |
| Outlay | About ₹3.04 lakh crore, including a central government share of about ₹97,600 crore, as announced at launch |
| Main parts | Prepaid smart metering for consumers, transformers and feeders; loss-reduction works |
| Target | Roughly 25 crore consumer smart meters were planned at launch; about 19.8 crore consumer meters have been sanctioned, and around 6 crore meters of all types were reported installed by August 2026 |
| Timeline | The scheme period was set until FY 2025-26 at launch; the Ministry of Power has sought an extension to FY 2027-28, so check whether it has been approved |
Smart meters are usually installed by a metering service provider on behalf of the DISCOM, under a contract where the DISCOM pays a monthly fee per meter. Consumers should not be asked to pay for the meter directly under the RDSS model; if you are asked, ask for the order that permits it.
How prepaid billing works
- Recharge through the DISCOM app, website, UPI or a collection centre.
- Daily deduction. The system computes your charges for the day (or period) and deducts them. Slabs are normally still applied on the monthly consumption.
- Low-balance alerts by SMS or app.
- Disconnection when balance runs out, subject to rules on timing. Many DISCOMs avoid disconnecting at night, on holidays or at weekends, and some give a small emergency credit.
- Monthly statement showing units, slab-wise charges, surcharges and subsidy.
Some DISCOMs have offered a small rebate on prepaid recharges. Check your SERC's tariff order for any prepaid discount.
Your rights
The Electricity (Rights of Consumers) Rules, 2020 and the Central Electricity Authority (Installation and Operation of Meters) Regulations cover metering. Points to know:
- Notice and record. You should be informed of the replacement. Ask for the final reading of the old meter to be recorded with you present, and photograph it.
- Testing. You can ask for the new meter to be tested if you doubt its accuracy; see faulty meter and meter testing.
- Old arrears and security deposit. In prepaid mode the DISCOM may adjust your security deposit or recover arrears from recharges by instalments; ask for a written statement.
- Sanctioned load. The 2023 amendment to the Rights of Consumers Rules, as we understand it, says higher maximum demand recorded by a smart meter should not be used to penalise you for the period before installation, and that load should be revised upward only when demand exceeds the sanctioned load at least three times in a year. See fixed charges and sanctioned load.
- Time-of-day tariff. Once a smart meter is installed, ToD may apply from that date where your SERC has notified it. See time-of-day tariff rules.
Why some bills go up after the swap
| Cause | What to check |
|---|---|
| Old meter was slow or stuck | Compare consumption before and after with appliance use; a big jump after replacing a meter that had shown flat readings is a sign the old one under-recorded |
| Old readings were estimated | The new meter shows actual use for the first time |
| Wiring or earth leakage | An electrician can test for leakage with mains off |
| Billing start date | The last bill of the old meter and first of the new may overlap |
| ToD or new surcharge from the same month | Read each line, not just the total |
| Meter fault | Ask for a check meter or test |
Before and after installation: a checklist
| Step | Why |
|---|---|
| Photograph the old meter reading and serial number | Proof for the final bill |
| Ask for the job card or installation report | Records date, reading and seal |
| Check the new meter's serial number on the next bill | Avoids mix-ups in multi-tenant buildings |
| Install the DISCOM app and link the account | Alerts and daily consumption |
| Keep a small buffer in the balance | Avoids disconnection during payment delays |
| Compare the first two monthly statements | Spot errors early |
The full list is in the bill check and dispute checklist.
Tenants and prepaid meters
A prepaid meter can make it easier for tenants to manage their own use if the meter is for the flat alone. If the landlord holds the account, agree in writing who recharges and how the balance is shared at move-out. Private sub-meters installed by landlords are not DISCOM smart meters; see landlord sub-meter charges.
Frequently asked questions
Can I refuse a smart meter?
Smart metering is being introduced under central regulations and state decisions, and DISCOMs own the meters. Whether you can keep postpaid mode depends on your state's policy for your category. Ask the DISCOM for the order under which the replacement is being done, and raise concerns in writing.
Will I be disconnected immediately when the balance hits zero?
DISCOMs usually send alerts first and many avoid disconnection at night and on holidays. The exact rules depend on your DISCOM. Reconnection should be automatic soon after a recharge.
Do slabs still apply in prepaid mode?
Yes. The tariff is the SERC's tariff. Daily deductions are an estimate within the month; the monthly statement applies the slabs.
Who do I complain to if a smart meter seems fast?
First the DISCOM, asking for a meter test in writing; then the CGRF and the Electricity Ombudsman. See the complaint route.
Sources and where to check
- Ministry of Power — RDSS and the Rights of Consumers Rules
- Central Electricity Authority — metering regulations
- Press Information Bureau — RDSS progress releases
- National Smart Grid Mission — smart metering programme information
