Government plans smart meters on DISCO transformers to curb theft

The government plans to install smart meters on the transformers of all power distribution companies (DISCOs) to curb electricity theft and overbilling, Federal Minister for Economic Affairs and Establishment Division Ahad Cheema said on Tuesday after chairing a meeting on the DISCOs in Islamabad.

The meeting reviewed development programmes for the distribution companies and discussed the Economic Affairs Division's efforts to arrange financing for the metering system. Participants said positive progress had been made, according to a release issued after the meeting.

No cost, number of transformers or installation timetable was disclosed, either in the release or in the accounts of the meeting published by Business Recorder and TechJuice.

The release said the transformer-level meters would help curb electricity theft, improve billing accuracy and protect consumers from overbilling, and would safeguard the interests of consumers, investors and the government.

The meeting also took up how the project would continue once the DISCOs are sold. Cheema said the government would put arrangements in place to ensure private investors carry the project forward.

Negotiations with multilateral partners on development programmes would continue until privatisation is completed, he said. If a DISCO is privatised while negotiations or programme preparations are 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 said any new project a private investor undertakes inside a DISCO must be processed through competitive bidding and, where applicable, receive approval from the National Electric Power Regulatory Authority.

He said the purpose of privatisation was not to shift costs or undue pressure onto consumers. The government would facilitate the process while safeguarding consumers' interests and ensuring investors meet their financial and contractual obligations, he said.

Power Minister Sardar Awais Ahmad Khan Leghari, the Prime Minister's Adviser on Privatisation and senior officials of the relevant ministries attended the meeting.