NEPRA Slams Power Companies for Installing 4 Million Smart Meters Without Approval

The National Electric Power Regulatory Authority (NEPRA) has sharply criticized Pakistan’s power distribution companies for installing four million Advanced Metering Infrastructure (AMI) meters without obtaining regulatory approval, a move involving billions of rupees in investment. During a public hearing on Quetta Electric Supply Company’s (QESCO) multi-year tariff petition for 2025-26 to 2029-30, NEPRA officials noted that the companies began the large-scale installation of AMI meters on instructions from the Ministry of Energy, bypassing the regulator’s mandatory approval process. The cost of an AMI meter is up to Rs. 20,000, compared to Rs. 5,000 for a standard meter. The hearing also revealed that after the solarization of agricultural tube wells in Balochistan, QESCO’s recovery rate improved from 30% to 60%, though challenges remain in collecting dues from domestic consumers. Out of Rs. 322 million in deduction charges, only Rs. 32 million has been recovered, as many consumers have taken legal action. NEPRA raised further concerns about QESCO’s backlog of pending connections, delays in replacing over 2,000 faulty meters, and a recovery rate of just 1.8% on Rs. 7 billion in outstanding bills. Company officials said efforts are underway to resolve these issues by next month. Meanwhile, the CEO of Hyderabad Electric Supply Company (HESCO) proposed that NEPRA introduce fixed network usage charges or shift to a gross metering framework to address subsidy challenges. He also suggested that, instead of exchanging units under net metering, DISCOs and consumers should set their own prices. NEPRA also expressed concern over recent accidents and incidents in HESCO’s service area due to public negligence and has requested an internal investigation report from the company.