A conspiracy to downsize by installing prepaid meters for privatization
Protests across the state against privatization
Press release of Vidyut Karmachari Sanyukta Sangharsh Samiti, Uttar Pradesh
Vidyut Karmachari Sanyukta Sangharsh Samiti, Uttar Pradesh
Press Release
2 September 2025
Vidyut Karmachari Sanyukta Sangharsh Samiti, Uttar Pradesh, has expressed concern that due to the smart prepaid meter scam, electricity distribution corporations could face a loss of ₹1,15,000 crore in outstanding revenue. The Sangharsh Samiti has also alleged that large-scale downsizing is being carried out under the pretext of installing smart prepaid meters for privatization purposes.
Central office bearers of the Vidyut Karmachari Sanyukta Sangharsh Samiti, Uttar Pradesh, stated today that the smart prepaid meter scam uncovered in places like Sitapur and Gonda may be part of a larger conspiracy involving collusion between private companies and culpable consumers.
The Sangharsh Samiti pointed out that the biggest justification for the privatization of the Purvanchal and Dakshinanchal Electricity Distribution Corporations is the alleged losses they are incurring. The Sangharsh Samiti claimed that the power corporation management is presenting false and fabricated loss figures. However, reports that companies installing smart meters are either zeroing out or destroying readings from old meters send a very dangerous signal. If this is not stopped in time, collecting outstanding electricity revenue will become impossible, and actual losses will increase.
The Sangharsh Samiti stated that currently, electricity distribution corporations have approximately ₹1,15,000 crore in outstanding electricity revenue from consumers. According to power corporation management data, there is a loss of about ₹1,10,000 crore. The committee has maintained from the beginning that if the ₹1,15,000 crore in revenue is recovered, there will be no loss; on the contrary, the power corporation will gain a profit of ₹5,000 crore.
According to the Sangharsh Samiti, about 3.4 million smart meters have been installed, and around 6,00,000 of these have not yet been returned. How many meters have had their old readings zeroed out or destroyed is a matter that requires thorough investigation.
The Sangharsh Samiti emphasized that smart prepaid meters are a primary condition for privatization. After the installation of smart prepaid meters, when privatization occurs, private companies will face no difficulties in collecting revenue and will automatically receive it. It is clear that smart meters are being installed for privatization, and in this name, the power corporation management has already begun large-scale downsizing before privatization.
According to 2017 norms, there was a rule of 20 employees per substation in rural areas and 36 employees per substation in urban areas. To facilitate large-scale downsizing of contract workers, regressive changes were made to these norms. Although the number of consumers has increased many times compared to 2017, the current norm is just 18–30 employees per substation in urban areas and 12.5 employees per substation in rural areas, leading to the dismissal of a significant number of contract workers. All of this is being done to benefit private households.