The government plans to install smart meters on transformers across all power distribution companies (DISCOs). The system aims to reduce electricity theft and prevent overbilling.
Federal Minister for Economic Affairs and Establishment Division Ahad Cheema chaired a meeting on Tuesday. Participants reviewed DISCO development programmes and funding arrangements.
The Economic Affairs Division (EAD) briefed the meeting on efforts to secure financing for the smart metering project. Officials reported positive progress in discussions with funding partners.
Smart Metering Project to Continue After Privatisation
Cheema said the government would ensure the smart metering project continues after privatisation. Under the proposed arrangements, private investors would take responsibility for carrying it forward.
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He said transformer-level smart meters could help reduce electricity theft. They could also improve billing accuracy and protect consumers from overbilling.
The minister stressed the need to safeguard the interests of consumers, investors and the government.
Development Financing to Transfer to Private Investors
Cheema said negotiations with multilateral partners would continue until the privatisation process concludes.
However, a DISCO could be privatised while financing talks or programme preparations remain underway. In such cases, the relevant financing and development programmes would transfer to the private investor.
The transfer would take place as part of the handover, subject to agreed arrangements.
NEPRA Approval and Competitive Bidding Required
Cheema also said private investors must follow competitive bidding for any new project within a DISCO.
Furthermore, projects would require approval from the National Electric Power Regulatory Authority (NEPRA), where applicable.
He stressed that privatisation must not shift costs or create additional pressure on consumers. Instead, the government would facilitate the process while protecting consumer interests.
He added that investors must meet their financial and contractual obligations.
Federal Minister for Power Division Sardar Awais Ahmad Khan Leghari also attended the meeting. The Prime Minister’s Adviser on Privatisation and senior officials from relevant ministries were also present.
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