The Uttar Pradesh Electricity Regulatory Commission has directed distribution companies to adjust excess charges — collected illegally from over 3.53 lakh consumers during new smart prepaid meter installations — against future electricity bills.
LUCKNOW — In a significant win for household electricity consumers across Uttar Pradesh, the state’s electricity regulator has ordered the refund of approximately ₹127 crore collected unlawfully from consumers during new smart prepaid meter installations. The Uttar Pradesh Electricity Regulatory Commission (UPERC) issued the directive after determining that distribution companies had charged far in excess of the approved rates when establishing new connections.
The order, handed down by Commission Chairman Arvind Kumar and Member Sanjay Kumar Singh during a hearing on a consumer petition, found that electricity distribution companies had been levying ₹6,016 for single-phase connections and ₹11,341 for three-phase connections — amounts that embedded unauthorized surcharges of approximately ₹3,216 and ₹7,241 respectively above the permissible rates.
“The collection was illegal. Between September and December 2025, over 3.53 lakh new connections were issued under these inflated charges. We demanded accountability — and the Commission delivered.” — Awadhesh Kumar Verma, President, State Electricity Consumer Council
The overcharging spanned a three-and-a-half month window — from September 10 to December 31, 2025 — during which 353,357 new connections were issued across the state. The cumulative impact of those excess charges amounts to roughly ₹127 crore, all of which the Commission has now directed be adjusted against consumers’ future electricity bills.
A Consumer Council Petition That Delivered Results
The case was brought to the Commission by Awadhesh Kumar Verma, President of the State Electricity Consumer Council, who filed a formal petition calling the collections illegal and demanding corrective action. Following the Commission’s ruling, Verma expressed gratitude on behalf of the state’s electricity consumers, calling the order a vindication of consumer rights.
The case underscores the importance of active consumer advocacy in holding public utilities accountable. The UPERC’s swift response to the petition — and its willingness to order a nine-figure refund — offers a template for how regulatory bodies can intervene when systemic overcharging goes unchecked.
Commission Keeps Pressure On: August Hearing Scheduled
The UPERC has not closed the matter. The Commission has scheduled a follow-up hearing for August 11th and has directed the Power Corporation’s Director (Commerce) to appear in person on that date — a move widely interpreted as a signal that the regulator intends to monitor the execution of its refund order closely and hold distribution company leadership directly accountable.
The practical challenge now lies in implementation: ensuring all 353,357 affected consumers actually receive the credit against their bills, and that no consumer falls through administrative cracks. Consumer groups have indicated they will continue monitoring the process ahead of the August date.
KEY FIGURES AT A GLANCE
| Metric | Single-Phase | Three-Phase |
|---|---|---|
| Amount Charged | ₹6,016 | ₹11,341 |
| Excess Charged | ~₹3,216 | ~₹7,241 |
| New Connections Affected | 3,53,357 (Sep 10 – Dec 31, 2025) | |
| Total Ordered for Refund | ~₹127 Crore |
Leave a Reply