The power ministry has issued a directive to all states and union territories to accelerate the installation of smart electricity meters across all consumer categories. According to reports from New Delhi, the ministry emphasized that mandatory rollout cannot be linked to billing mode — prepaid or postpaid — of the meter. The communication was issued under the Central Electricity Authority's Installation and Operation of Meters (Amendment) Regulations, 2026, which makes smart meter installation mandatory in areas where communication networks are available.
Despite the mandatory nature of the rollout, significant progress remains to be achieved. As reported by New Delhi, only 5.7 crore smart meters had been installed till June 30 out of the 20.3 crore meters approved under the revamped distribution sector scheme (RDSS) launched in July 2021. The total number of functional smart meters currently stands at over 7.2 crore, as several states have also installed them under different schemes. The ministry has instructed states to ensure meters are installed within the timelines prescribed by the Centre.
The ministry's directive comes as the initial deadline under RDSS was March 2026, but it was extended by two years due to slow rollout progress. According to New Delhi, the power ministry stated that smart meter installation provides transparent and accurate billing for consumers with consumption monitoring facilities. The system also facilitates an ecosystem for energy transition and leverages benefits of time of day tariff, enabling load shifting to non-peak timings and reducing electricity bills.
