Home India Prepaid Electricity Meters Not Mandatory, Govt Clarifies in Parliament

Prepaid Electricity Meters Not Mandatory, Govt Clarifies in Parliament

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Manohar Lal Khattar speaking in Lok Sabha about prepaid electricity meters with smart meter device visual
Power Minister Manohar Lal Khattar clarifies prepaid electricity meter policy in Lok Sabha

New Delhi, India — April 2, 2026

The Government of India has clarified that consumers are not required to install prepaid electricity meters, addressing concerns over compulsory adoption of the system.

Speaking in the Lok Sabha, Power Minister Manohar Lal Khattar dismissed claims that the government is forcing consumers to switch to prepaid metering similar to private sector practices.

 No Mandatory Shift to Prepaid Meters

During Question Hour, the minister emphasized that the transition to prepaid meters is not compulsory for consumers.

He clarified that the system is intended as an option rather than a mandate, countering widespread concerns among households and farmers.

Flexible Payment Options for Low-Income Consumers

Addressing concerns about affordability, especially for farmers and daily wage earners, Khattar noted that small recharge options are available.

Consumers can recharge their electricity usage for short durations, typically ranging from five to ten days, making the system more manageable for those with irregular incomes.

Defaulters May Be Shifted to Prepaid System

However, the minister indicated that habitual bill defaulters may be required to switch to prepaid meters.

According to him, such measures are necessary to reduce payment defaults and ensure financial stability for power distribution companies.

He noted that some consumers repeatedly avoid paying bills, and prepaid systems can help mitigate this risk.

Commercial Nature of Power Distribution

Khattar also highlighted that electricity distribution companies operate on a commercial basis and require steady revenue to maintain supply.

Ensuring timely payments, he said, is essential for sustaining operations and delivering uninterrupted electricity services.