Ailing billing system: New Lesco CEO faces daunting task

LAHORE:The billing system of Lesco has several persistent challenges. Inaccurate electricity billing system has annoyed consumers to the core. According to many, the menace of inflated bills has been institutionalised over the years.

Lesco's Advanced Metering Infrastructure (AMI) project could help modernise the energy infrastructure and enhance consumer experience. Veteran officer Ramzan Butt has been tipped as successor of outgoing CEO of Lahore Electric Supply Company (LESCO).

Ramzan is an experienced professional in the power utility sector. He believes that as long as he acts with integrity and does not overstep his authority, he remains unafraid of any challenges he may face. Although he holds a senior position, Butt has largely been marginalised by the previous top management at Lesco. He was consistently excluded from important consultations and policy discussions, in stark contrast to the outgoing CEO's close advisors, who frequently attended meetings and had direct access to the CEO's office.

Despite being intentionally sidelined, Butt continued to lead the Material Management Department, which is crucial to the power utility's operations. The ongoing shortage and procurement issues related to power meters have been a significant source of controversy for several years, particularly due to delays in the installation of smart meters, which were mandated by the prime minister.

AMI meters provide real-time data on electricity consumption, enabling consumers to control their usage patterns and potentially save costs. Automated meter readings eliminate manual errors and reduce the scope for malpractice, such as overbilling and tampering. AMI meters may enable Lesco to handle increasing demands efficiently and provide reliable energy delivery.

However, progress on installation of smart AMI meters has been slow. There are serious challenges in meeting timeline for installation of AMI meters for domestic three-phase connections.

As Ramzan Butt is going to assume top office in the power utility, he would face challenge of removing bottlenecks in streamlining billing system. The consequent real-time monitoring and accurate billing would improve consumer satisfaction. Automated system is indispensable to streamline operations and minimise human intervention, which is main reason of the corruption.

It may also lead to reduced energy theft as improved detection and prevention capabilities help reduce energy theft. Lack of financing has not been an issue in this regard as foreign donors are willing to provide credit for execution of vital project concerning financial viability of the biggest power utility of the country.

The implementation of AMI meters by Lesco faces several hurdles. He would need to ensure upgrade of the existing infrastructure to support AMI technology. Installing AMI meters in a large number of households and businesses can be time-consuming and logistically complex. If he succeeded in addressing this fundamental issue, Lesco’s customer service as well as its financial health would see a positive change.