Uperc Orders Review Of Vertical System Pushes Smart Meter Rollout

The Uttar Pradesh Electricity Regulatory Commission (UPERC) has sought an independent assessment of the vertical system adopted by the state’s power distribution companies (discoms) and directed them to accelerate smart meter implementation with greater focus on consumer protection and service quality.

In its tariff order for 2026-27, issued on Thursday, the commission laid down a series of directives for the discoms.

The commission said the impact of the vertical system should be evaluated through a Policy Impact Assessment (PIA) by a professional agency. It said corrective measures should be taken wherever shortcomings are identified.

UPERC also asked the utilities to reassess the adequacy of maintenance staff at substations and feeder levels and ensure sufficient manpower to comply with the Standards of Performance Regulations, 2019.

The observation assumes significance as the vertical system, under which distribution functions have been reorganised, has drawn criticism from employees’ organisations over maintenance, fault response and accountability.

On smart metering, the commission directed the discoms to continue the rollout in a transparent and time-bound manner while ensuring proper consumer awareness, prompt grievance redressal, meter testing and billing accuracy. It stressed that consumers should not face inconvenience due to installation or operational issues and that the benefits of smart meters should translate into improved billing efficiency, reduced losses and better consumer services.

“We have also directed the discoms to submit a report on how smart meters have benefited them in terms of collection efficiency and reduction in line losses. The commission has made it clear that it will not treat the cost of smart meters as admissible expenditure if the rollout fails to produce positive results for the discoms,” a senior UPERC official said.