Smart meters to be installed on DISCO transformers to curb power theft, overbilling

The government plans to install smart meters on transformers across all power distribution companies (DISCOs) to curb electricity theft and overbilling, Federal Minister for Economic Affairs Ahad Cheema said on Tuesday.

Cheema made the remarks while chairing a meeting on DISCOs in Islamabad, where participants reviewed development programmes and progress on arranging financing for the smart metering project through the Economic Affairs Division (EAD).

The meeting was informed that progress had been made in securing funding for the initiative, which aims to improve billing accuracy, reduce electricity theft and protect consumers from overbilling.

Cheema said arrangements would be made to ensure the project continues after the privatisation of DISCOs, with private investors required to take it forward.

He said negotiations with multilateral development partners for ongoing programmes would continue until the privatisation process was completed.

If a DISCO is privatised while negotiations or programme preparations are underway, the relevant financing and development programmes would be transferred to the private investor as part of the handover, subject to agreed arrangements.

The minister also stressed that any new project undertaken by a private investor within a DISCO must go through competitive bidding and obtain approval from the National Electric Power Regulatory Authority (NEPRA), where applicable.

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

Federal Minister for Power Division Sardar Awais Ahmad Khan Leghari, the prime minister’s adviser on privatisation and senior officials from relevant ministries also attended the meeting.