The federal government has decided to install Advanced Metering Infrastructure (AMI) in five power distribution companies (Discos) to modernize the electricity distribution system and curb mounting transmission and distribution (T&D) losses, which are estimated to be costing the sector nearly $1 billion annually.
To facilitate the initiative, the government has approached the World Bank to act as Transaction Adviser for the project, according to a report by Business Recorder.
Acknowledging the severity of the crisis, PPIB Managing Director Shah Jahan Mirza stated that Pakistan’s power sector is facing acute operational and financial challenges due to high technical and commercial losses, weak recoveries, obsolete metering infrastructure, and limited visibility into electricity consumption.
Currently, T&D losses account for around 18 percent of the total power supply, resulting in an annual financial loss of approximately Rs. 265 billion.
These inefficiencies continue to undermine the sustainability of the sector, place additional burden on consumers, and limit fiscal space for much-needed investments.
Under the proposed plan, PPIB has been tasked with hiring a private AMI Services Provider (AMISP) for the installation and operation of AMI systems in Lahore Electric Supply Company (LESCO), Multan Electric Power Company (MEPCO), Peshawar Electric Supply Company (PESCO), Hazara Electric Supply Company (HAZECO), and Quetta Electric Supply Company (QESCO).
The project will be implemented under a Public Private Partnership (PPP) framework in coordination with key stakeholders, including the Power Planning and Monitoring Company (PPMC), Power Information Technology Company (PITC), and the respective Discos.
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