Islamabad: Federal Minister for Power, Sardar Awais Ahmed Khan Leghari, has urged the World Bank to provide funds and investment for installing Smart Meters at Distribution Level Transformers to enhance transparency and address unjust load-management caused by losses at the micro level.
The minister made this request during a meeting with the visiting World Bank Vice President for South Asian Region, Mr. Martin Raiser, who was accompanied by a delegation. Federal Minister for Petroleum Division, Dr. Musaddiq Malik, also attended the meeting.
Highlighting the significance of Smart Meters at the transformer level, the Federal Minister explained that while smart meters are currently being installed at domestic and grid levels with positive outcomes, the desired efficiency and equitable load management for specific areas cannot be achieved without installing smart meters at transformers. Presently, entire feeders are subject to uniform load management, which fails to incentivize efficient consumers. He added that these meters could also help manage peak load demand effectively.
Awais Leghari further invited the World Bank to invest in smart metering projects for LESCO and MEPCO under a Public-Private Partnership model. He noted that these distribution companies are next in line for privatization.
The minister informed the delegation about the Bijli Sahulat Package, which has resulted in a 7% increase in industrial power consumption in December 2024 compared to the same period last year. This indicates consumer interest and support for future surplus electricity auctions in the country.
He also outlined the various initiatives undertaken by the Power Division to enhance efficiency, promote financial discipline, ensure decision-making autonomy, and lower power tariffs for domestic and industrial consumers. He mentioned that the Power Sector is transitioning toward a multi-buyer and multi-seller market, with CPPA ceasing to act as the sole buyer. The principles of competitiveness and affordability will guide power generation and distribution. Wheeling charges for electricity transmission are also nearing finalization.
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The Federal Minister briefed the delegation about recent measures to simplify electricity connections for industrial estates and special economic zones, including one-point connections with distribution and billing rights. This move eliminates monopoly and reduces the involvement of distribution company employees at various stages.
The meeting expressed satisfaction with the current World Bank portfolio for the Power Sector and agreed to expedite fund utilization at the distribution company level. Both parties also emphasized increased technical-level interactions to provide the Power Sector with the necessary data for improved policymaking and implementation. It was agreed that long-term electricity packages would allow the private sector sufficient time to plan their businesses effectively.
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Mr. Martin Raiser, the World Bank Vice President for South Asian Region, commended the Power Division’s reform efforts and emphasized the importance of timely fund utilization for various bank-supported projects. He also endorsed the installation of Smart Meters at Distribution Level Transformers and assured that the World Bank team would work with stakeholders to finalize the details.
Mr. Raiser reaffirmed the World Bank’s commitment to collaborating with the Power Division and providing support across sub-sectors to achieve efficiency and discipline.
