The Private Power and Infrastructure Board (PPIB) has begun consultations on a proposed $2.3 billion project to install 16.2 million smart electricity meters across five distribution companies, according to a Business Recorder report carried by Profit. The project would replace single-phase meters at Lahore Electric Supply Company, Multan Electric Power Company, Peshawar Electric Supply Company, Quetta Electric Supply Company, and Hazara Electric Supply Company. The proposal was discussed at a stakeholders’ meeting on Tuesday, chaired by PPIB Acting Managing Director Dr Munawar Iqbal Kamboh, with a representative of the International Finance Corporation (IFC) joining online. Under the proposed public-private partnership (PPP) framework, consumers would repay the cost of installing the meters through their electricity bills over 12 years, which has become the main point of contention.
The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has opposed the arrangement, warning that fixed payments could burden consumers without guaranteeing lower electricity theft, reduced distribution losses, or better bill recovery. Its illustrative calculations assume a cost of Rs40,000 per meter, which would put the total at Rs648 billion for 16.2 million meters. Financed over 12 years at an assumed 15 percent interest rate, this could mean annual payments of Rs119.5 billion, or roughly Rs615 per meter each month, bringing total payments to around Rs1.4 trillion before operating and technology-related expenses. The federation warned that the model could resemble the capacity-payment structure used for independent power producers, where consumers pay regardless of actual performance.
FPCCI has demanded an independent cost-benefit analysis, disclosure of project costs, and safeguards that link payments to verified reductions in losses and improvements in recoveries. It also objected to proposed foreign exchange indexation, government guarantees, and provisions that would allow project costs to be passed directly into electricity tariffs. Participants were told the project would not involve dollar indexation, although the federation’s written observations pointed to foreign exchange adjustment provisions in the draft guidelines. Representatives of distribution companies questioned the consultation process, and participants raised concerns about cybersecurity and about how effective smart meters would be in areas where electricity theft and non-payment are widespread. These points matter because smart meters are meant to give utilities real-time visibility of consumption, and their value depends on whether that data translates into better recoveries.
Officials indicated that locally manufactured meters would be preferred, with international companies allowed to collaborate with domestic investors. The government has yet to finalise the technology and procurement arrangements. A pilot project is expected to begin next month, followed by further consultations in Karachi, Lahore, and Islamabad. FPCCI has urged PPIB to suspend the proposed framework until its financial implications are independently assessed and the National Electric Power Regulatory Authority (NEPRA) completes the relevant regulatory proceedings. The outcome of those consultations will show whether the project moves ahead in its current form, since the repayment structure, the technology choice, and the link between consumer payments and measurable performance remain open questions for the government and the businesses raising concerns.
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