Study calls for smart electric metres

Islamabad : Pakistan’s electricity sector stands at a crucial juncture as a recent study underscores the pressing need to modernise the country's electricity billing system.

This was stated in a study authored by Afia Malik, Tehmina Asad and Ghulam Mustafa here at Pakistan Institute of Development Economics (PIDE) under the Research for Social Transformation & Advancement (RASTA) programme.

It advocates for the adoption of smart meters as a solution to address financial losses, billing inaccuracies and inefficiencies in the power grid. For nearly two decades, Pakistan’s reliance on a manual billing system led to significant financial deficits, exacerbated by outdated infrastructure and rampant electricity theft. Power distribution companies (DISCOs) struggle with revenue recovery, while consumers frequently encounter billing discrepancies. A transition to Automated Metering Infrastructure (AMI) offers a transparent, data-driven approach to electricity management, ensuring efficiency and accuracy.

Dr Nadeem Javaid, Vice-Chancellor, PIDE, observed that electricity billing system’s inefficiencies are a major cause of financial losses and consumer frustration. Smart metres provide a modern solution that reduces theft, enhances billing accuracy and empowers consumers to manage electricity consumption more effectively. He said the transition is necessary for a more sustainable and efficient power sector.

A survey conducted across major cities, including Rawalpindi, Islamabad, Lahore, Multan, Faisalabad, and Sukkur revealed that 79% of respondents were willing to adopt smart metres, even if they had to bear the initial cost. The findings suggest that households using smart metres could reduce their electricity bills by up to 17% while DISCOs could significantly improve revenue collection. Case studies demonstrate the potential impact.

While the advantages of smart metres are clear, the study stresses that successful implementation requires strategic execution. A survey of 800 consumers from LESCO and MEPCO indicated that consumer awareness and engagement are critical to adoption. To ensure a smooth transition, the report recommends initiatives such as consumer education programmes to build trust, flexible payment plans that allow consumers to pay in instalments through their electricity bills and the development of a competitive smart metre market to drive down costs through increased competition.

Beyond financial efficiency, smart meters can facilitate Pakistan’s transition to a more sustainable energy system. Their integration with mobile applications and smart grids can optimise energy distribution and promote the adoption of renewable energy. However, achieving these benefits requires strong government support and policy alignment.

As countries worldwide embrace digital advancements in utility management, the study entails Pakistan not to delay in modernising its power sector.