Consumer Uproar Forces BEST To Halt Smart Meter Rollout
By Anushka Singh
In what has now snowballed into one of the most fiercely contested utility service reforms in recent memory, the Brihanmumbai Electricity Supply and Transport (BEST) Undertaking’s initiative to install smart prepaid meters across the island city has come under intense scrutiny.
Accusations of overbilling, procedural lapses, lack of consent, and alleged coercion have sparked public outrage, resulting in the suspension of smart meter installations in residential areas—a decision that underlines the growing resistance to unilaterally imposed reforms.
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| The BEST Headquarters in Colaba, Mumbai |
The Rollout: Ambitious, Expensive, and Contentious
In 2023, BEST signed a contract with Adani Energy Solutions Ltd (AESL) to install 10 lakh smart meters across Mumbai as part of a ₹13,000 crore project. The initiative, billed as a ‘smart’ leap toward digital power consumption management, was expected to curb electricity theft, enable real-time consumption monitoring, and facilitate prepaid usage.
However, by October 2024, what began as a technologically forward transition spiralled into a logistical and legal quagmire. Despite having the capacity to install 1,000–1,200 meters per day, AESL’s average installation numbers plummeted to just 250–300 meters daily. The reason: growing consumer distrust and protests, especially across Mazgaon, Sandhurst Road, Dongri, Mahim and Colaba.
The Complaints: Inflated Bills, No Consent, and Hidden Costs
Consumer grievances have been consistent and severe. Users reported their monthly electricity bills doubling or tripling following smart meter installation. For instance, residents of Gilder Lane and Colaba cited cases where electricity bills previously hovering around ₹1,200 jumped to over ₹3,000 post-installation. In one case, a 65-year-old retired resident alleged receiving a disconnection notice just two days after refusing a smart meter installation, despite legal provisions mandating a minimum 15-day prior notice.
Activists like Advocate Kamlakar Shenoy took the issue to the Electricity Ombudsman, alleging that the average cost of ₹12,000 per smart meter was being stealthily passed on to consumers via tariff petitions. “The meters aren’t free; consumers are paying for them indirectly,” said Shenoy in a petition submitted to the Maharashtra Electricity Regulatory Commission (MERC).
In another contentious move, residents were allegedly being forced to switch from postpaid to prepaid plans—with a security deposit ranging between ₹500 and ₹1,200—raising questions about transparency and consumer choice.
Public Pressure and Political Intervention
Mounting pressure from citizens’ groups, activists, and local politicians finally compelled BEST to halt the installation of smart meters in residential areas. On 9 December 2024, BEST issued a statement confirming the suspension of the rollout in island city homes, clarifying that existing meters would not be replaced unless faulty.
Leaders from the Shiv Sena (UBT) and local MLAs endorsed the suspension and demanded a review of the entire process. BEST General Manager Lokesh Chandra assured that no consumer would be forced to switch to a smart meter and that installations would continue only on a voluntary basis.
Despite the suspension, reports in June 2025 indicated ongoing complaints of coercive installations in pockets of Mahim West and Colaba. Residents alleged the issue hadn’t been fully resolved and accused AESL of resuming installations under the guise of “faulty meter replacements” without thorough verification.
BEST and Adani Respond: 'Misunderstanding and Miscommunication'
BEST officials maintain that the new meters are technically sound and that bill increases are due to more accurate readings, particularly during high-consumption summer months. A spokesperson from Adani Energy Solutions Ltd attributed the public uproar to a "communication gap", asserting that smart meters offer enhanced control over usage and promote energy efficiency.
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Technically, the smart meters allow consumers to:
* Track real-time consumption via mobile apps.
* Opt for Time-of-Day tariffs that can lower costs.
* Eliminate manual meter reading and billing errors.
But these purported benefits have failed to offset the anxiety triggered by abrupt transitions, poorly worded notices, and insufficient public awareness campaigns.
What Consumers Are Demanding
Citizens and resident welfare associations have now raised several key demands:
1. Voluntary adoption of smart meters and retention of analog meters unless proven faulty.
2. Transparency in tariff filings, with explicit mention of meter costs.
3. Independent audit of the meter installation process and billing anomalies.
4. Strict legal compliance regarding disconnection protocols.
5. Public consultation before implementing large-scale changes.
Not Mandatory, Say Experts
Experts argue that no consumer can be compelled to shift to a smart meter unless mandated by MERC regulations.
Under the Electricity Act, 2003 and subsequent rules, meter upgrades cannot bypass due process and must include consumer participation.
Furthermore, the Consumer Protection Act, 2019 empowers individuals to challenge arbitrary utility practices and seek redressal through consumer courts.
The Draft's Take: Reform Cannot Ignore Consent
The controversy surrounding BEST’s smart meter initiative is not a rejection of technology but a resounding indictment of unilateral decision-making and opaque implementation. The utility’s failure to ensure informed consent, transparent costing, and procedural fairness turned a potentially transformative digital upgrade into a public relations debacle.
As Mumbai grapples with rising temperatures, high energy demands, and the growing need for sustainable solutions, reforms in utility services are inevitable. However, inclusivity, accountability, and legal propriety must anchor every change—or even the smartest meters will short-circuit under the weight of public distrust.
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