The government is working to install smart meters on transformers across all Power Distribution Companies (DISCOs) in order to curb electricity theft, improve billing accuracy, and protect consumers from overbilling. The project will continue even after the privatization of DISCOs, and the government is making arrangements to make sure that private investors carry it forward after the handover. The matter was discussed during a meeting chaired by Federal Minister for Economic Affairs and Establishment Division Ahad Cheema, which reviewed development programmes for the DISCOs and the efforts of the Economic Affairs Division (EAD) to arrange financing for the smart metering system, according to a press release.
The meeting noted positive progress in arranging funding for the project. It also discussed what will happen to ongoing financing and development programmes if a DISCO is privatized before negotiations or programme preparations are completed. Negotiations with multilateral partners for development programmes will continue until the privatization process is finished, and if a DISCO is privatized in the meantime, the relevant financing and development programmes will be transferred to the private investor as part of the handover, subject to agreed arrangements. This approach is meant to prevent the smart metering work from stopping when the ownership of a distribution company changes.
Ahad Cheema emphasised that any new project undertaken by a private investor within a DISCO must be processed through competitive bidding and must obtain approval from the National Electric Power Regulatory Authority (NEPRA), as applicable. He stressed that privatization should not shift costs or put undue financial pressure on consumers. According to him, the government will facilitate the process while safeguarding the interests of consumers and making sure that investors meet their financial and contractual obligations, which sets out the conditions that buyers of the distribution companies will be expected to follow.
Federal Minister for Power Division Sardar Awais Ahmad Khan Leghari, the Adviser to the Prime Minister on Privatization, and senior officials from the relevant ministries also attended the meeting. Smart meters on transformers allow a distribution company to measure the electricity that enters a section of the network and compare it with what is billed to consumers, which helps identify where losses or theft are taking place. The government has not announced the cost of the project, the number of transformers to be covered, or a timeline in the press release, so those details are likely to emerge as the financing arrangements are finalised with the development partners.
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