The National Electric Power Regulatory Authority (Nepra) has raised serious concerns regarding the installation of four million Advanced Metering Infrastructure (AMI) meters by power distribution companies (DISCOs) without obtaining prior approval from the regulator. The issue came under scrutiny during a public hearing on Wednesday while Nepra considered multi-year tariff petitions submitted by the Quetta Electric Supply Company (Qesco) for financial years 2025-26 through 2029-30.
Under existing regulations, the installation of AMI meters requires Nepra’s formal approval due to the multibillion-rupee investments involved. However, the regulator noted that several distribution companies have begun deploying the advanced metering technology without seeking the necessary nod. Nepra asked the DISCOs to submit a proper investment plan for review and approval, given the significant cost implications—Rs5,000 for a static meter compared to Rs20,000 for an AMI meter.
The companies responded that they had acted on directives from the Ministry of Energy (Power Division), which prompted the early rollout of AMI meters. Nepra emphasized that implementing AMI technology also requires establishing a supporting grid infrastructure, entailing additional large-scale investments.
During the hearing, Qesco officials highlighted some operational successes, noting that shifting agricultural tube wells to solar energy in Balochistan improved bill recoveries from 30% to 60%. However, they admitted challenges in domestic and commercial collections, reporting recovery of only Rs32 million out of Rs322 million in deduction charges, representing a mere 10% collection rate. Consumer disputes and ongoing court cases were cited as major obstacles.
Nepra further questioned the prolonged delays in electricity connection applications, some pending for over six months. Company officials assured that pending requests would be addressed in the coming month. The regulator also examined safety concerns, noting a higher incidence of fatal and non-fatal accidents at Hesco, which the company attributed to public negligence. Nepra requested internal inquiry reports regarding these incidents.
The regulator also highlighted 2,188 defective meters yet to be replaced and raised concerns over alleged overbilling practices. Qesco and Hesco officials explained that the low recovery rates were due to disputes with consumers, many of whom had taken legal action.
The chief executive officer of Hesco proposed that Nepra consider implementing fixed network usage charges based on sanctioned load or export capacity. He also suggested transitioning to a gross metering framework for solar net metering to eliminate cross-subsidies and allow consumers and DISCOs to charge rates independently, rather than exchanging electricity units.
Nepra concluded the session by stressing the need for compliance, improved recovery mechanisms, and proper approval for large-scale investments in AMI infrastructure. The regulator’s scrutiny underscores ongoing challenges in Pakistan’s power sector, including investment oversight, billing efficiency, consumer disputes, and technology integration.
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