NEPRA Criticizes Power Companies for Installing 4 Million Smart Meters Without Prior Approval

The National Electric Power Regulatory Authority (NEPRA) has strongly criticized Pakistan’s power distribution companies (DISCOs) for installing nearly four million Advanced Metering Infrastructure (AMI) meters without securing mandatory regulatory approval. The move, which involves billions of rupees in investment, was reportedly carried out under instructions from the Ministry of Energy, bypassing NEPRA’s oversight.

During a public hearing on Quetta Electric Supply Company’s (QESCO) multi-year tariff petition for 2025–26 to 2029–30, NEPRA officials highlighted that the installation of AMI meters—each costing up to Rs. 20,000 compared to Rs. 5,000 for conventional meters—had proceeded without prior authorization. Regulators warned that such actions undermine transparency and could have serious financial implications for the power sector.

The hearing also revealed that QESCO’s revenue recovery improved from 30% to 60% following the solarization of agricultural tube wells in Balochistan. However, the company continues to face challenges in collecting payments from domestic consumers. Of Rs. 322 million in deduction charges, only Rs. 32 million has been recovered, with many consumers pursuing legal cases against the utility. NEPRA further raised concerns about QESCO’s backlog of pending connections, delays in replacing more than 2,000 faulty meters, and an extremely low recovery rate of 1.8% on Rs. 7 billion in outstanding bills. QESCO officials assured that efforts are underway to resolve these issues by next month.

Meanwhile, the CEO of Hyderabad Electric Supply Company (HESCO) proposed introducing fixed network usage charges or shifting to a gross metering framework to reduce subsidy pressures. He suggested that under this model, instead of exchanging electricity units through net metering, DISCOs and consumers could negotiate their own electricity prices.

NEPRA also addressed safety concerns, citing recent accidents in HESCO’s jurisdiction attributed to public negligence. The regulator has demanded an internal investigation report to determine accountability and prevent similar incidents in the future.