(1) No licensee shall supply electricity, after the expiry of two years from the appointed date, except through installation of a correct meter in accordance with the regulations to be made in this behalf by the Authority:
Provided that the licensee may require the consumer to give him security for the price of a meter and enter into an agreement for the hire thereof, unless the consumer elects to purchase a meter:
Provided further that the State Commission may, by notification, extend the said period of two years for a class or classes of persons or for such area as may be specified in that notification.
(2) For proper accounting and audit in the generation, transmission and distribution or trading of electricity, the Authority may direct the installation of meters by a generating company or licensee at such locations, within such period and in such manner as it may consider necessary.
(3) If a person makes default in complying with the provisions contained in this section or the regulations made thereunder, the Appropriate Commission may make such order as it thinks fit for enforcing compliance, and may also impose a penalty not exceeding one lakh rupees for every default.
Legal Commentary & Landmark Judgments: Section 55
Section 55 of the Electricity Act, 2003 mandates that no licensee shall supply electricity except through the installation of a correct meter, establishing the statutory mandate for smart, prepaid, or electronic energy metering.
In meter tampering or slow-meter billing disputes, demand that the disputed meter be tested in the consumer's presence at an independent NABL-accredited laboratory under Section 55; testing by the licensee's internal squad without consumer notice invalidates supplemental assessments.