New Delhi, July 29 -- The Centre plans to allow government-authorized private laboratories to test electricity meters, ending the near-exclusive control of power distribution companies (discoms) over meter testing and giving consumers an independent way to challenge disputed electricity bills.
The proposal, being prepared by the Department of Consumer Affairs through its Legal Metrology Division, would allow Government Approved Test Centres (GATCs) operated by private entities to test electricity meters, according to two people aware of the development.
If implemented, consumers disputing the accuracy of their electricity meters would be able to approach authorized private laboratories for an independent assessment instead of relying solely on tests conducted by the concerned discom.
Consumer forums across states regularly receive complaints relating to sudden spikes in electricity bills, alleged fast-running meters, defective smart meters and disputes over replacement charges. Under the current system, consumers who suspect a faulty meter submit it to the distribution company for testing, which is generally carried out in laboratories operated or designated by the utility itself. Consumer organizations have long argued that the process lacks independence.
In many cases, if the meter is found to be accurate, consumers have to bear the testing charges. Where utilities conclude that the meter has been damaged due to consumer negligence or tampering, consumers may also be asked to pay for its replacement.
The reform comes as India undertakes one of the world's largest smart metering programmes, targeting around 250 million smart meters, making the quality and accuracy of meters critical to its success.
The proposal follows a similar reform introduced earlier this year by the Department of Consumer Affairs, when it amended the Legal Metrology (Government Approved Test Centre) Rules to permit Government Approved Test Centres (GATCs) operated by private entities to verify petrol, diesel, CNG, LNG, LPG and hydrogen dispensers. Prior to the amendment, testing work was undertaken primarily by government departments.
The government had said the reform would improve transparency, reduce delays and enhance ease of doing business by expanding testing capacity.
The people cited above said the electricity meter proposal is based on the same principle.
"Consumers often question whether a meter is faulty, but the testing is carried out by the same utility that issued the bill. The idea is to provide an independent verification mechanism that inspires greater confidence in the outcome," one of the persons cited above said.
The second person said an independent testing ecosystem could reduce disputes before Consumer grievance redressal forums and electricity ombudsmen while improving trust in the billing process.
The proposal comes amid growing consumer scrutiny of smart meter rollouts in several states. In Uttar Pradesh, Maharashtra, Bihar, Rajasthan and other states, consumers have reported unexpectedly high bills after smart meter installation, prompting utilities to conduct inspections, awareness drives and meter verification exercises
Queries sent to the Department of Consumer Affairs and several state electricity distribution companies across Andhra Pradesh, Assam, Bihar, Chhattisgarh, Gujarat, Himachal Pradesh, Rajasthan and Uttar Pradesh, as well as private utilities including Reliance Power, Tata Power, and Adani Electricity, remained unanswered until press time.
According to the Ministry of Power's reply to the Lok Sabha on 12 March, smart metering works have been sanctioned for 197.9 million consumers under the Revamped Distribution Sector Scheme (RDSS). As of February 2026, 45.5 million smart meters had been installed under RDSS, compared with 59.7 million installed across the country under various schemes.
India's electricity meter market is dominated by companies such as Genus Power Infrastructures, Secure Meters, HPL Electric & Power, Larsen & Toubro, Schneider Electric, Adani Energy Solutions, Polycab India, Genus Electrotech and several advanced metering infrastructure (AMI) solution providers supplying smart meters under RDSS.
"Electricity is one of the largest recurring household expenses. Consumers should have access to an independent testing facility if they believe the meter is defective," the second person said.
Experts said independent testing laboratories would strengthen confidence in meter verification by providing an external mechanism to assess meter performance.
"The proposal reflects the broader legal principle that justice should not only be done but should also be seen to be done. Independent verification of electricity meters would enhance the evidentiary value of test reports and inspire greater confidence among consumers in the fairness of the process," said Vijay Kumar, partner at law firm Fox Mandal.
"At present, the limited availability of NABL and BIS-accredited government laboratories has created testing bottlenecks, which can slow smart meter deployment. Allowing accredited private laboratories to undertake meter testing can significantly reduce turnaround time, support RDSS implementation and enable government agencies to focus on enforcement and consumer grievance redressal," said Vinit Mishra, partner, Technology Consulting, EY India.
"However, the framework must include robust regulatory oversight, transparent empanelment, periodic audits and safeguards against conflicts of interest to ensure consumer confidence in meter accuracy is not compromised," said Mishra. Published by HT Digital Content Services with permission from MINT. For any query with respect to this article or any other content requirement, please contact Editor at [email protected]