Chandigarh: In a decisive move to rein in mounting electricity arrears, the Punjab State Power Corporation Limited (PSPCL) has decided to install prepaid smart electricity meters in all state government offices, effectively ending the practice of post-paid power billing for official establishments.
As per the decision, all Punjab government offices will be required to switch to prepaid smart meters by February 15. Once implemented, departments will have to recharge electricity in advance, similar to prepaid mobile services, ensuring that power consumption is paid for upfront and fresh arrears do not accumulate.
The move comes at a time when Punjab’s government departments have emerged as major defaulters. As of January 12, outstanding electricity dues owed by various state departments had reportedly crossed ₹2,600 crore, prompting the power utility to take corrective action.
A recent memorandum issued by PSPCL’s Chief Engineer (IT) outlined the details of the initiative. The corporation said the decision aligns with directions issued in 2023 and forms part of performance-based power sector reforms. These reforms are linked to incentives that allow states to borrow up to an additional 0.5 per cent of their Gross State Domestic Product (GSDP), subject to compliance with structural improvements in the electricity sector.
Under the new system, electricity bills will no longer be generated after consumption. Instead, departments will have to maintain sufficient prepaid balance to ensure uninterrupted power supply. PSPCL officials said this mechanism will help prevent future dues and improve financial discipline among government offices.
Government offices using prepaid smart meters will also be eligible for a one per cent rebate on energy charges, provided their sanctioned load is up to 45 KVA. The benefit will apply to Phase-1 connections with loads up to 7 KW and Phase-3 connections ranging from 7 KW to 45 KVA.
However, PSPCL has exempted certain essential services from the mandatory rollout. Hospitals, water works and street lighting, which are categorised as emergency or critical services, will not be required to install prepaid meters.
The utility has also directed that only one electricity meter will be allowed per premises, and any additional or unauthorised connections will be removed. As part of digitisation efforts, electricity bills and related communication will be sent through SMS, email and WhatsApp, making the system paperless. Departments will also receive advance alerts when their prepaid balance runs low.
To curb power theft and tampering, the smart meters will be installed outside buildings, either on poles or in pillar boxes, ensuring greater transparency and monitoring.
