Stonewalled big saving power sector project in jeopardy, again

ISLAMABAD: Mysterious roadblocks seem to have put an ADB-funded power distribution grid modernisation project in jeopardy, potentially exposing Pakistan to a penalty payment to the tune of $2.2 million.

Originally planned in 2015, the $400-million Advanced Metering Infrastructure (AMI) project brings ADB funding to revolutionise electricity metering at Iesco and Lesco. One of the key benefits of the new system would be the total elimination of theft. Delay in the implementation of the project means power theft goes on unabated, costing the nation billions of rupees every year.

The AMI project (2015) was planned to manage supply and demand through eliminating theft and reduce costs for metering and billing and improving line losses. The project formalities like approval of ECNEC and cabinet were obtained by the previous government.

The project nearly lapsed once, but was rejuvenated by ADB on the government’s request under former power minister Omar Ayub Khan and SAPM Nadeem Babar. Korean Telecom Corporation has extended loan bid bond for 9th time due to indecisiveness and lack of focus towards digitalisation in power sector. The Korean state-owned company won the biding process in September 2019 worth $117 million projects for Iesco to install the digital metering to stop theft, transformer load position monitoring, timely reading and billing. However, the project is allegedly being delayed unnecessarily by bureaucracy at the wishes of senior government official on their interest that contract may be given to Lahore based company.

This turnkey AMI project includes a complete “state-of-the-art” smart electricity meter grid with complete communication infrastructure and computer data centres running oracle database (ERM), customer care and billing software. These meters will have their own unique IP addresses and will provide real time online meter reading and online communication of critical data such as voltage, amperage and other electricity parameters to disco servers which will then process it in real time.

Upon non-payment of bills, the computer system can remotely shut off the meter without anyone having to leave the Disco office. This will eliminate any role of linemen and eliminate human errors in meter reading resulting in faulty readings, billing based on averages due to non-availability of meter readings, corrupt practices by linemen, billing errors etc. as this whole process will be carried out by state-of-the-art technology.

Similarly, due to this automation and use of smart meters, electricity theft will be eliminated as these meters will be capable of detecting any tempering with it and reporting it to Disco head office servers in real time. This smart metering will identify exact location where pilferage is occurring as it is happening and will help in load management. This can revolutionise power and gas (energy) sector and cut its leakages, pilferage and losses which are running in billions of dollars.

Consumers will be able to check their meter reading in real time on their cell phones and monitor their energy consumption and thus managing their budgets. On the other hand, the government will have critical real time data available on all the utility consumers which is instrumental for any planning, budgeting, management and application of tariffs based on peak consumption patterns. Same project has been implemented in Uzbekistan by installing 1.4 million electric smart meters which have increased manifold billing and monitoring system.

This metering system will also be able to cover natural gas as gas meters are installed within five to 10 feet of electricity meters in any residential premises and they will send gas readings through these electricity meters. The government can launch in Lesco whose technical bidding were not finalised yet after seeing the fate of project Iesco. The government can complete this project in Iesco and Lesco by 2023 if it can start within six months by fully utilising the $400 million ADB loan.

But unfortunately, like previous governments, the present government is not executing this project due to very powerful mafia which is behind this electric/gas theft and uncontrollable losses and vested interests of various players in power sector.

When The News contacted Power Ministry spokesperson to know for this delay, he promised to respond as soon as possible. The News sent reminders through WhatsApp messages and made telephone calls but neither messages were responded nor phone calls were attended for consecutive three days.