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Pakistan Launches Smart Metering Reforms to Modernize Power Sector

Gravatar Avatar Web Desk | 11 hours ago
Pakistan Launches Smart Metering

ISLAMABAD: The Power Division has launched a major initiative to modernize Pakistan’s power sector by introducing smart metering across the country. The new program focuses on installing advanced smart meters in all power distribution companies (DISCOs). This move is part of Pakistan’s efforts to digitize the electricity sector and improve customer service.

The fiscal year 2025–26 has been designated as the “Customer Service Improvement Year,” with a focus on enhancing service quality and transparency. Around 38 million consumers are expected to benefit from the reforms, with 80% of them being single-phase users. The new initiative is expected to improve billing accuracy and increase consumer trust.

The price of smart meters has been reduced from Rs 20,000 to Rs 15,000 per unit, with the government expecting to save Rs 25 billion annually through transparent procurement practices. The smart meters will also allow consumers to monitor their real-time electricity usage via a mobile application. This feature aims to encourage responsible electricity consumption and reduce overall costs.

The smart metering system will significantly reduce human intervention, bringing greater accuracy to the billing process. Additionally, it will enable faster complaint resolution, remote monitoring of the power network, and quicker fault detection. These reforms are seen as a crucial step in transforming Pakistan’s power sector into a more efficient and transparent system.

Earlier, the Power Division clarified that consumers would not be charged for expenses related to non-functional power plants in the case of K-Electric (KE). The National Electric Power Regulatory Authority (NEPRA) recently reviewed KE’s tariff, reducing the permissible loss ratio to protect public interest. The Power Division believes this will help reduce fuel costs and balance the relationship between KE and state-run DISCOs.

Read More :Pakistan Plans to Establish Electricity Exchange, Power Sector Reforms Underway

 

The federal government of Pakistan is working on establishing an electricity exchange, modeled after India’s power market, as part of ongoing reforms in the country’s power sector.

In a recent meeting, the Prime Minister directed the Power Division to propose solutions for implementing net metering and a strategy to reduce losses in distribution companies (DISCOs) through technological advancements. The government is also reviewing tariff reductions, and plans to distinguish between internal measures that can be implemented independently and those requiring external consultations.

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