Nepra raps Discos over unapproved AMI meter rollout
Pakistan’s power regulator has reprimanded distribution companies (Discos) for installing four million advanced metering infrastructure (AMI) meters without prior regulatory approval, a project requiring multibillion-rupee investment clearance.
During a public hearing on Tuesday, the National Electric Power Regulatory Authority (Nepra) questioned the power firms for proceeding with installations without an approved investment plan. The regulator directed them to formally submit the plan for scrutiny, noting that the shift from static to AMI meters—costing around Rs 20,000 each compared to Rs 5,000 for traditional units—represents a substantial capital outlay.
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Energy companies told Nepra that they had initiated the installations under instructions from the Power Division of the Ministry of Energy. The regulator observed that alongside meter costs, the rollout also necessitated grid upgrades and new data infrastructure, further escalating expenses.
The observations were made during hearings on multi-year tariff petitions filed by the Quetta Electric Supply Company (QESCO) for FY2025–30. QESCO officials informed the authority that recovery ratios had improved sharply, from 30% to 60%, following the solarisation of agricultural tube wells in Balochistan. The company said it was now focusing on domestic consumers to enhance revenue collection, though recovery on deduction charges remained at just 10%, or Rs 32 million out of Rs 322 million billed.
Nepra also flagged operational inefficiencies, including pending connection applications for over six months. QESCO assured the regulator that these cases would be resolved within the next month.
At the same session, Hyderabad Electric Supply Company (HESCO) proposed introducing fixed network usage charges based on sanctioned load or export capacity and suggested a shift from net to gross metering to eliminate cross-subsidies. Under this model, Discos and solar consumers would sell electricity at their own respective rates rather than exchanging units.
Nepra expressed concern over HESCO’s backlog of pending connections—some delayed for up to two years—and its high incidence of fatal and non-fatal accidents. The regulator sought internal inquiry reports into safety incidents and directed immediate rectification of 2,188 defective meters linked to overbilling. HESCO officials admitted recovery of only 1.8% from Rs 7 billion in billed deduction charges, attributing delays to ongoing disputes and litigation with consumers.
The regulator also noted 75 pending net metering applications, prompting HESCO’s call for a gross metering framework to curb line losses. Nepra is expected to issue detailed directives following review of compliance reports from the utilities.
The National Electric Power Regulatory Authority has in recent months intensified scrutiny of Pakistan’s power distribution companies amid rising circular debt and public criticism over inefficiency and overbilling. Sector reforms, including metering modernization and tariff rationalization, remain central to the government’s 2025 power sector recovery plan.
