International Journal of Scientific Research and Engineering Development

Smart metering is a modern digital system designed to measure electricity consumption in a more accurate, efficient, and transparent manner. Unlike traditional electromechanical meters, which require physical visits by meter readers, smart meters automatically record electricity usage and transmit consumption data directly to the electricity distribution company. This automation significantly reduces dependence on manual meter reading and minimizes errors that often arise due to human involvement, delayed readings, or inaccessible consumer locations. Smart meters provide real-time or near real-time information on electricity consumption and support two-way communication between consumers and the distribution company. This enables utilities to continuously monitor usage patterns, identify abnormal consumption, detect meter faults, and reduce electricity theft. Accurate data transmission ensures that electricity bills are generated strictly on the basis of actual consumption, thereby reducing billing disputes and enhancing trust between consumers and the utility. From the consumer’s perspective, smart meters offer greater control by allowing users to track daily or monthly electricity usage and manage their energy expenses more effectively, helping them avoid sudden or unexpectedly high bills. One of the most important features of smart metering is prepaid billing. Under this system, consumers are required to recharge their electricity usage in advance, similar to prepaid mobile services. This approach promotes responsible consumption, improves payment discipline, and significantly reduces outstanding dues and delayed payments for distribution companies. In addition, smart meters enable remote disconnection and reconnection of electricity supply in cases of non-payment or technical requirements, which saves time, reduces operational costs, and improves overall system efficiency.

Mr.Vishu Kumar, Dr.Varsha Gupta,"Financial Implications of Smart Metering for UPCL" International Journal of Scientific Research and Engineering Development, V9(1): Page(343-352) Jan-Feb 2026. ISSN: 2581-7175. www.ijsred.com. Published by Scientific and Academic Research Publishing.