Federal Minister for Power Sardar Awais Ahmed Khan Leghari on Monday said that due to consistent efforts and timely actions by the Power Division to promote transparency and competition, the prices of smart meters for power distribution companies (DISCOs) have been reduced by up to 40 percent, resulting in estimated annual savings of Rs150 billion at the national level.
The minister made these remarks after a comprehensive report regarding smart meters was presented, said a press release.
He stated that the adoption of transparent and internationally competitive procurement processes has reduced the price of a three-phase smart meter from around Rs. 45,000 to less than Rs. 25,000, bringing it close to the price of a conventional three-phase meter. Similarly, the price of a single-phase smart meter has been reduced by Rs. 7,000. These prices are exclusive of applicable taxes.
The minister said that improved planning by the Power Division and positive changes in the Pakistan Engineering Council’s regulations encouraged strong participation by international companies. Barriers to entry were removed, and bulk procurement of smart meters by all power distribution companies led to lower prices due to reduced costs of raw materials and supplies.
The minister added that continuous monitoring, the introduction of clear and competitive standards for smart meters also helped bring prices down.
According to the Federal Minister, the estimated annual savings of Rs. 150 billion are based on the replacement of defective and outdated meters by power distribution companies. In addition, the installation of new meters will provide further financial relief to electricity consumers. This benefit will be reflected in lower costs shown in demand notices for new connections.
He added that lower smart meter prices will speed up digitalization in the power sector and further improve the performance of the national grid.
The minister further said that smart meters will help eliminate incorrect readings, allow quick detection of electricity theft, enable prepaid billing, provide consumers with direct access to usage data, support faster power restoration without the need for a lineman, and offer several other benefits.