CEA Releases Draft (Installation and Operation of Meters) (5th Amendment) Regulations, 2025

Posted On - 12 May, 2025 • By - King Stubb & Kasiva

Introduction

The Central Electricity Authority (CEA) has released the Draft Central Electricity Authority (Installation and Operation of Meters) (5th Amendment) Regulations, 2025 in a major step toward updating and simplifying India’s power sector metering systems.[1] Designed under Section 177 of the Electricity Act, 2003, these draft rules seek to update the current 2006 rules with an eye toward smart metering, open access consumers, and standardizing Advanced Metering Infrastructure (AMI). Up until April 5, 2025, stakeholders and the public were invited to provide comments.

Explanation (Key Points)

1. Updated definition of an interface meter

  • The amendment defines “interface meter” as:
  • Meters placed between systems controlled by consumers, licensees, and power generators for billing and accounting purposes at interconnection points.
  • Meters connected to the Appropriate Commission’s Inter-State Transmission System (ISTS), Intra-State Transmission System, or Distribution System for consumers awarded open access at voltages above 650 volts.

2. Clarification of Undefined Terminals

  • Terms not specifically defined in these rules will thus follow their meanings under the Electricity Act, 2003 and related guidelines, according a new clause. This seeks to guarantee consistency in interpretation and so lower uncertainty.

3. Clauses for Lower Voltage Open Access Consumers

  • The draft adds guidelines for open access consumers connected at voltages less than 650 volts:
  • obligatory use of Smart Meters compliant with Indian Standards (IS).
  • Exempt from prepayment mode requirements lets these consumers or prosumers choose different billing systems.

4. Advanced Metering Infrastructure standardisation

  • Nowadays, all AMI systems have to match CEA’s “Guidelines for Standardization and Interoperability in AMI Systems” so guaranteeing:
  • Head End Systems (HES), Smart Meters, and Meter Data Management (MDM) systems all have compatibility.
  • Interoperability among devices helps to support future scalability and flawless integration.

5. Change in Open Access Metering Layout

  • For customers linked to ISTS, Intra-STS, or Distribution Systems with open access at voltages above 650 volts, the amendment changes Table 1 under Regulation 7(1)(a):
  • The Appropriate Commission will now decide metering arrangements rather than set guidelines.
  • This change enables case-specific decisions, allowing changing technical and market requirements.

Conclusion

The 5th Amendment marks progress toward a digital, consumer-friendly, and simplified regulatory framework for India’s metering infrastructure. By promoting smart meters and standardization while allowing flexibility, the CEA aims to build a resilient energy ecosystem. The inclusive feedback process underscores transparency, and once finalized, these rules are expected to transform the metering landscape, driving efficiency and innovation in the power sector.

[1] https://cea.nic.in/wp-content/uploads/notification/2025/03/Draft_Central_Electricity_Authority_Installation_and_Operation_of_Meters_5th_Amendment_Regulations_2025-2.pdf