ISLAMABAD: The Private Power and Infrastructure Board (PPIB) has begun consultations on a proposed $2.3 billion smart electricity metering project that could cover approximately 16.2 million single-phase connections across five distribution companies.
The proposal involves Advanced Metering Infrastructure (AMI), which can support remote readings, detailed consumption monitoring and improved distribution management. It has also prompted questions from industry about costs and how they might be recovered from consumers.
Companies covered
The proposal names Lahore Electric Supply Company (LESCO), Multan Electric Power Company (MEPCO), Peshawar Electric Supply Company (PESCO), Quetta Electric Supply Company (QESCO) and Hazara Electric Supply Company (HAZECO). AMI meters can transmit readings electronically and may help utilities identify unusual usage, outages and some categories of losses. Benefits depend on effective implementation and follow-up.
Industry raises cost concerns
The Federation of Pakistan Chambers of Commerce and Industry has questioned the financing structure. Business representatives warned that consumers could face payments approaching Rs1.4 trillion over 12 years in an illustrative scenario. That figure is not a confirmed final bill. The central concern is whether households and businesses could be required to finance equipment without guaranteed reductions in theft, losses or weak recoveries.
Public-private partnerships
The programme is being discussed as a public-private partnership. Participants were told the proposed model would avoid dollar indexation and could recover costs from single-phase consumers over 12 years. Local manufacturing may receive preference, with foreign firms potentially partnering with domestic investors. Technology and procurement arrangements have not been finalised. Regulatory and privatisation authorities are also involved in discussions.
Smart meters are not a complete solution
Better meter data cannot alone eliminate illegal connections, non-payment or ineffective enforcement. Transparent procurement, consumer protections and measurable improvements in billing and collections will be essential to establishing value for money.
Next steps
A pilot is expected next month, with further consultations planned in major cities.
Source: https://www.brecorder.com/news/40445205/ppib-holds-talks-with-stakeholders-usd23bn-project-to-deploy-162m-ami-meters-envisaged