Around 2.45 lakh smart meter consumers to pay fresh security deposit over 4 months. Check why
Consumers get breathing room as security deposits for smart meters switched from prepaid to postpaid can be paid in four equal instalments from July to October, but many long‑term households who originally paid just Rs. 50–100 decades ago will still face a sharp rise in their bills under the new ₹ 400/kW rule.
- Jul 28, 2026,
- Updated Jul 28, 2026 3:39 PM IST
After the state electricity utility scrapped prepaid meters and reverted all connections to postpaid between July and October, about 2.45 lakh residential smart-meter consumers in the district will now be required to pay a security deposit again. The decision follows the move to comply with regulations in the electricity supply code that make security deposits mandatory for postpaid customers.
Security set at Rs. 400 per kw
Under current rules, the corporation will charge security at ₹400 per kilowatt of sanctioned load. Households with higher sanctioned loads will need to pay proportionally larger amounts. Many long-standing customers who took connections after 1990 had paid only Rs. 50 or Rs. 100 as security decades ago; the revised rate represents a substantial increase for them.
READ ALSO: Electricity bills to get costlier in Delhi; DERC allows additional fuel and power surcharge
Installations and impact
More than 2.77 lakh smart meters have already been installed in the district, the majority on domestic connections. When meters were first converted to prepaid, earlier deposits were adjusted and consumers were not required to make fresh payments. That prepaid system sparked public anger and protests, prompting the utility to restore postpaid billing last month.
Payment schedule to ease burden
To mitigate the immediate financial strain, the electricity corporation will collect the total additional amount in four equal instalments spread across electricity bills from July through October. Even so, the phased recovery means millions of consumers will see higher bills over the next four months.
"The security deposit for smart meters converted from prepaid to postpaid can be paid in four equal instalments with the electricity bills from July to October for consumers' convenience," said Anil Kumar Singh, Superintending Engineer, Zone‑I, Ghaziabad.
READ ALSO: India's household debt rises to 45.5% of GDP; non-housing retail loans account for 58.4%, show data
Financial burden quantified
At ₹ 400 per kw, the corporation estimates the move will impose an extra financial burden of approximately ₹ 9.80 crore (₹ 98,044,000) on district consumers. The price increase will affect older people and low-income households with small deposits the most. They are asking the utility company to offer exemptions or easier payment plans for customers who are vulnerable.
After the state electricity utility scrapped prepaid meters and reverted all connections to postpaid between July and October, about 2.45 lakh residential smart-meter consumers in the district will now be required to pay a security deposit again. The decision follows the move to comply with regulations in the electricity supply code that make security deposits mandatory for postpaid customers.
Security set at Rs. 400 per kw
Under current rules, the corporation will charge security at ₹400 per kilowatt of sanctioned load. Households with higher sanctioned loads will need to pay proportionally larger amounts. Many long-standing customers who took connections after 1990 had paid only Rs. 50 or Rs. 100 as security decades ago; the revised rate represents a substantial increase for them.
READ ALSO: Electricity bills to get costlier in Delhi; DERC allows additional fuel and power surcharge
Installations and impact
More than 2.77 lakh smart meters have already been installed in the district, the majority on domestic connections. When meters were first converted to prepaid, earlier deposits were adjusted and consumers were not required to make fresh payments. That prepaid system sparked public anger and protests, prompting the utility to restore postpaid billing last month.
Payment schedule to ease burden
To mitigate the immediate financial strain, the electricity corporation will collect the total additional amount in four equal instalments spread across electricity bills from July through October. Even so, the phased recovery means millions of consumers will see higher bills over the next four months.
"The security deposit for smart meters converted from prepaid to postpaid can be paid in four equal instalments with the electricity bills from July to October for consumers' convenience," said Anil Kumar Singh, Superintending Engineer, Zone‑I, Ghaziabad.
READ ALSO: India's household debt rises to 45.5% of GDP; non-housing retail loans account for 58.4%, show data
Financial burden quantified
At ₹ 400 per kw, the corporation estimates the move will impose an extra financial burden of approximately ₹ 9.80 crore (₹ 98,044,000) on district consumers. The price increase will affect older people and low-income households with small deposits the most. They are asking the utility company to offer exemptions or easier payment plans for customers who are vulnerable.