Udaipur, April 30, 2025 – Electricity consumers (except for the agricultural sector) in the State will now have to pay upfront before consuming electricity. According to news reports, the DISCOMs (electricity distribution companies) are starting the installation of smart metres for about 1.43 crore connections. This means there will be no postpaid facility (payment after consumption) anymore. Only prepaid options will be available, meaning consumers will have to pay in advance (recharge) before using electricity.

This change will lead to around Rs 50,000 crores annually being collected in advance. Currently, this amount is already being billed for.

As part of the central government’s Revamped Distribution Sector Scheme (RDSS), the State will begin installing smart metres for 1.43 crore consumers, at a cost of Rs 14,037 crore.

DISCOMs are preparing a mechanism to help consumers easily transition to this new system. For the first two to four months, postpaid facilities may still be available, but after that, the system will automatically switch to prepaid. Both options will be available in the metres during this phase.

Benefit for Consumers?

• Consumers will be able to get daily updates on electricity consumption and charges, allowing them to plan their monthly usage accordingly.
• In case of power cut off, a direct notification will be sent to the control room.
• Alerts will be sent to mobile phones whenever the load on the electricity supply increases.
  Consumers will continue to receive a 15-paise per unit discount.

Reasons for Change

The Central Government has set an agenda to replace old metres with prepaid smart metres across the country. According to Energy Department officials, the aim behind this is to improve the financial stability of DISCOMs and ensure uninterrupted power supply to consumers. By receiving money in advance, DISCOMs will be able to make timely payments to power generation companies, avoiding delays, penalties and the need for bank loans. Additionally, it will relieve the DISCOMs of the entire billing and distribution process.

Source: Media Reports