Now, automatic disconnection of prepaid meters that show negative balance

UP Power Corporation Limited has issued a comprehensive standard operating procedure to regulate recharges, arrears adjustment and automatic disconnection of prepaid power connections

LUCKNOW Even as nearly 80% of prepaid smart meter consumers across the state continue to operate with negative balances amounting to nearly ₹1,000 crore, the UP Power Corporation Limited (UPPCL) has issued a comprehensive standard operating procedure (SOP) to regulate recharges, arrears adjustment and automatic disconnection of prepaid power connections.

Data as of January 21, 2026, shows that around 38 lakh out of 47.4 lakh prepaid consumers are in negative balance in UP. (Pic for representation)

“Due to lack of SOPs, the UPPCL was not able to disconnect power supply to meters running on negative balance. Now, we will soon start snapping supply to such meters,” a senior UPPCL official said.

Data as of January 21, 2026, shows that around 38 lakh out of 47.4 lakh prepaid consumers are in negative balance in UP. The Purvanchal Vidyut Vitaran Nigam Limited (PUVVNL) alone accounts for ₹364 crore in dues, followed by Madhyanchal Vidyut Vitaran Nigam Limited (MVVNL) with ₹221 crore, Paschimanchal Vidyut Vitaran Nigam Limited (PVVNL) with ₹213 crore and Dakshinanchal Vidyut Vitaran Nigam Limited (DVVNL) with ₹187 crore. In percentage terms, over 80% of prepaid consumers in most UP discoms are in arrears.

Despite the prepaid system being designed for advance payment, recharge behaviour remains weak. About 43% of consumers have never recharged their smart meters since installation, while nearly 60% have recharged two times or less. Only around 22% recharge regularly, indicating limited steady cash flow for utilities.

Amid this situation, UPPCL has issued SOPs aimed at tightening financial discipline under the prepaid regime. As per the new guidelines issued by UPPCL director (commercial) Prashant Verma, prepaid consumers whose balance turns negative will be provided emergency credit for three days. If the balance is not replenished within this period, the system will trigger automatic disconnection.

However, disconnection will not be carried out between 6am and 8am, on Sundays, public holidays or on the second Saturday of every month. If the three-day emergency credit period ends on any of these days, supply will be disconnected on the next working day.

The SOP also lays down a mechanism to adjust postpaid dues during the transition to prepaid meters. For domestic consumers under LMV-1 category, arrears up to ₹10,000 will be recovered by adjusting 10% of each recharge amount. Dues between ₹10,000 and ₹15,000 will see 15% adjustment, between ₹15,000 and ₹20,000 at 20% and above ₹20,000 at 25%.

For all other categories, 25% of each recharge will be adjusted against past dues. Consumers will also have the option to clear their entire outstanding amount in one payment.

For new prepaid connections effective January 1, 2026, UPPCL has introduced mandatory first recharge amounts linked to load and category. Rural domestic consumers will be required to recharge ₹100 per kW, urban domestic consumers ₹300 per kW, domestic loads above 2 kW ₹400 per kW, non-domestic consumers ₹1,000 per kW, private institutions ₹4,000 per kW, small and medium power consumers ₹2,000 per kW and electric vehicle charging stations ₹1,000 per kW. This amount will be credited directly into the prepaid balance.

The SOP further provides stricter reconnection rules for consumers remaining in negative balance for over 30 days, especially in LMV-1 and LMV-2 categories, with phased recharge requirements before restoration of supply.