ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has taken serious notice of power distribution companies (DISCOs) for installing around four million Advanced Metering Infrastructure (AMI) meters without securing the regulator’s formal approval.
Under the multibillion-rupee investment programme, NEPRA’s consent is mandatory for such installations. However, several DISCOs began deploying the advanced meters without prior authorization. During a public hearing, the regulator directed the companies to submit a comprehensive investment plan for consideration.
In their defense, the DISCOs claimed that the Ministry of Energy (Power Division) had directed them to initiate the installation process. NEPRA highlighted the significant financial implications, noting that while a standard static meter costs around Rs5,000, an AMI meter costs about Rs20,000—necessitating a massive investment for grid setup and integration.
The matter surfaced during a hearing on the multi-year tariff petitions of the Quetta Electric Supply Company (QESCO) for FY2025-26 to FY2029-30. NEPRA observed that QESCO’s recovery rate had improved from 30% to 60% after shifting agricultural tube wells to solar power in Balochistan. However, the company still struggles to collect deduction charges, recovering only Rs32 million out of Rs322 million due.
Officials acknowledged consumer resistance and ongoing court cases as major hurdles. NEPRA also noted delays in new connection requests and directed QESCO to resolve all pending applications promptly.
Meanwhile, the Hyderabad Electric Supply Company (HESCO) proposed that NEPRA introduce fixed network usage charges based on sanctioned load or adopt a gross metering system instead of net metering. HESCO’s CEO argued that under gross metering, DISCOs and solar consumers would operate under separate pricing structures without the exchange of units, reducing cross-subsidies and losses.
NEPRA further raised concerns over HESCO’s safety record, citing a high rate of fatal and non-fatal accidents, overbilling complaints, and 2,188 defective meters awaiting replacement. The regulator demanded internal inquiry and compliance reports while questioning the company’s poor recovery performance—only 1.8% of Rs7 billion billed as deduction charges.
HESCO officials attributed the low recovery to consumer disputes and litigation. The regulator also expressed concern over 75 pending net metering applications, to which the company reiterated its call for transitioning to gross metering to avoid further losses.
Story by Zafar Bhutta
