The future of a smart metering project designed to reduce power theft and line losses appears uncertain and the Asian Development Bank's soft loan of more than Rs80 billion has not been utilised.
Sources revealed that the board of directors of power distribution companies (Discos) had halted implementation of the project and began work on an alternative plan.
Despite the non-utilisation of the loan, the Discos reportedly paid over Rs400 million in consultancy and other charges before the work was halted.
The plan was to install smart meters in order to reduce line losses in power distribution companies.
An ADB loan of $1.2 billion on easy terms was approved for the purpose, of which $460 million was given to Pakistan in the first phase.
According to official documents, the loan was meant to install 2.2 million smart meters in the Lahore and Islamabad Electric Supply Companies.
The services of a consultant were acquired for the purpose. However, after completion of the preparatory phase, board members of the Discos stopped the work on the plan.
The sources said that a lobby had started working on an alternative project under which high revenue connections would be converted to smart metering.
Such connections were already constantly monitored by by officers of the distribution companies, the sources said and added that under the ADB-funded project model, the system was to be upgraded after obtaining data of users, transformers and feeders along with reducing power theft and technical line losses.
Meanwhile, various Discos, including those of Gujranwala, Multan and Peshawar, have issued tenders worth over Rs3 billion for smart meters.
The tender documents include a clause that the meters should be purchased only from a company having products compatible with the Universal Data Integration Layer (UDIL) software of a USAID-assisted meter data management system.
The smart meters will be connected to the data management system. It will collect all the meters' data.
The sources said the system would be able to control electricity meters across the country, turn off or restore power supply to any meter. Only meters compatible with the UDIL software can be part of the smart metering system.
They will be connected to a central system designed for power control through the same software.
According to sources in the Power Information Technology Company, the system was developed by a local firm that had no experience of developing such a sensitive solution.
An energy expert said there were also concerns about cyber security and it was not right to limit the control of power supply across the country to one room.
The expert said that instead of centralisation Discos should install independent systems.
Speaking to The Express Tribune, Power Information Technology Company Chief Executive Officer Imtiaz Ahmed said the UDIL gateway was the global standard.
"Our system is completely secure and has a firewall installed," he added.
He also said that a team of the company gives UDIL certification to meter manufacturing firms.
Published in The Express Tribune, February 9th, 2022.
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