Major Financial Irregularities in Smart Prepaid Meters Exposed in Uttar Pradesh

The Uttar Pradesh State Electricity Consumer Council has uncovered massive financial irregularities in the procurement of smart prepaid meters across the state. Official purchase invoices submitted before the Uttar Pradesh Electricity Regulatory Commission (UPERC) reveal that the tender-winning company IntelliSmart is buying single-phase smart prepaid meters for only ₹2,630 — yet consumers are being charged ₹6,016 per meter, without obtaining mandatory regulatory approval.

The revelations have reportedly created panic among power corporations, as the evidence presented by the Consumer Council contradicts the cost claims made earlier before UPERC.

Corporation’s Claimed Costs

• ₹7,000–₹9,000 per meter — Submitted before UPERC

• ₹6,016 per meter — Recovered from consumers (without approval)

• This amounts to over 100% cost inflation, illegal over-recovery from consumers, and a potential multi-crore scam, the Council said.

Tender Escalation Raises Bigger Questions

The Consumer Council highlighted that although the Government of India approved ₹18,885 crore for the statewide smart meter project, tenders worth ₹27,342 crore were awarded in Uttar Pradesh — an excess of nearly ₹8,500 crore.

Council officials argue that the massive gap between the actual meter cost and tendered cost, combined with inflated cost reporting to the Regulatory Commission, justifies a CBI investigation.

Consumer Council President Awadhesh Kumar Verma, who also serves on the Central Advisory Committee in the energy sector, said: “The entire matter is extremely serious. With documentary evidence available, a CBI inquiry becomes unavoidable to protect the interest of over two crore electricity consumers.”

He added that earlier, when high meter rates were challenged, the Government of India had clarified that the estimated cost of a smart prepaid meter along with the entire system should be around ₹6,000, which further exposes the discrepancies in UP.

Council’s Demands

1. CBI or High-Level Investigation

Into irregularities in procurement, tendering, and cost inflation.

2. Stop Illegal Recovery from Consumers

Immediate halt to collection of ₹6,016 per meter.

3. Refund Excess Amount

Refund based on actual purchase cost of ₹2,630–₹2,825.

4. Action Against Responsible Officials

Strict action against officials and companies responsible for inflated tenders and misleading the Regulatory Commission.

Council’s Warning

The Consumer Council said that the matter directly impacts over two crore consumers in Uttar Pradesh. It has urged the UP Electricity Regulatory Commission to immediately take cognizance and order transparent, time-bound action.