For implementation of any Act, the authorized institutions are empowered to frame regulations and rules. These rules and regulations must align with the parent Act. As per Section 47(1) and (5) of the Electricity Act, 2003, electricity consumers are given the option of both post-payment and pre-payment for electricity usage. Therefore, any regulation or rule framed under this Act cannot mandate pre-payment for consumers. Section 55(1) of the Electricity Act empowers the Authority to make regulations regarding the installation of meters at consumer premises. Under Section 177(2)(c), the Authority is empowered to frame regulations regarding the installation and operation of meters under Section 55. However, these regulations must align with the parent Act. Since the parent Act provides both postpaid and prepaid as valid options, mandating only prepaid mode would be inconsistent with the Act. It is true that the Authority can mandate the inclusion of prepayment features in meters and issue regulations for installing meters with prepayment capability at consumer premises. As per clause 4(1)(b) of the Metering Regulations (Amended) 2019, it is mandatory for meters to have the prepayment feature, not for them to be installed in prepaid mode. Even the Electricity (Rights of Consumers) Rules, 2020 specify the requirement for smart meters with prepayment capability, not necessarily their installation in prepaid mode. Clause 2(R) of the Meter Regulations 2006 was removed in the 2019 amendment. The inclusion of the prepayment feature is to ensure that consumers can choose this option, as per the parent Act. Hence, concerned authorities must re-read the applicable regulations and rules. The real question is: Are the regulations mandating prepayment features in meters, or are they mandating installation in prepaid mode? Key Questions: 1. Is the August 2021 notification by the Government of India, mandating installation of prepaid mode meters for all consumers, appropriate and consistent with the Electricity Act, 2003? 2. When the Electricity Act, 2003 gives consumers the right to choose the prepayment option, how justified is it to mandate that all smart meters have a prepayment feature? Shouldn’t smart meters with the prepayment feature be installed only for those consumers who opt for it? 3. Is it appropriate for the central government to compel states to install smart meters in prepaid mode for all consumers (which is inconsistent with the parent Act)? Replacing existing meters with prepaid-enabled smart meters is expected to cost an additional ₹10,000–₹12,000 crore(for Rajasthan only). Is it rational to incur this cost in order to avail a ₹5,000–₹6,000 crore grant under RDSS (Revamped Distribution Sector Scheme)? 4. Have the state government/DISCOM officials assessed whether such heavy expenditure would yield proportionate benefits for the DISCOMs? Is this merely a claim, or can competent authorities guarantee such returns?