Govt seeks smart meters to curb power theft, overbilling

ISLAMABAD:

The government is working to secure funding for installing smart meters on transformers across all power distribution companies (DISCOs) with plans to ensure the project continues even after their privatisation.

The initiative is aimed at curbing electricity theft, improving billing accuracy and protecting consumers from overbilling, according to a statement issued after a meeting chaired by Minister for Economic Affairs and Establishment Division Ahad Cheema on Tuesday.

The meeting reviewed development programmes for DISCOs and the Economic Affairs Division's efforts to arrange financing for the smart metering system. Participants were informed that progress had been made in securing funding for the project.

The meeting also discussed arrangements for continuing the initiative after privatisation. Cheema said the government would ensure that private investors took the project forward following the transfer of the distribution companies.

He said negotiations with multilateral development partners for financing development programmes would continue until the privatisation process was completed. In cases where a DISCO was privatised while negotiations or programme preparations were still under way, the relevant financing and development programmes would be transferred to the private investor as part of the handover, subject to agreed arrangements.

Cheema further said any new project undertaken by a private investor within a DISCO would have to go through competitive bidding and obtain approval from the National Electric Power Regulatory Authority (Nepra), where applicable.

He stressed that privatisation should not result in additional costs or undue financial pressure on consumers, adding that the government would facilitate the process while protecting consumer interests and ensuring investors fulfilled their financial and contractual obligations.