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Monday, November 4, 2024

Government Eyes Prepaid Meters to Combat Electricity Theft

The Pakistani government is considering prepaid meters to combat electricity theft and enhance the power sector through strategic investments and reforms.

Federal Minister for Energy Awais Leghari announced on Monday that the government is considering the implementation of a prepaid meter system to address the widespread issue of electricity theft across Pakistan. Speaking at a press conference in Multan, Leghari compared the proposed system to prepaid mobile billing, stating that it could significantly reduce theft and improve billing transparency. The introduction of prepaid meters is seen as a pivotal step towards reforming the power sector, offering better facilities to consumers while curbing default payments.

Leghari emphasized that the government is fully committed to eradicating electricity theft, which has been a persistent problem in the country. The installation of prepaid meters would allow consumers to pay for electricity in advance, thereby minimizing the chances of theft. This system is expected to bring about a substantial reduction in electricity losses, particularly in regions where theft is rampant. The government’s proactive approach is part of a broader strategy to enhance the efficiency and reliability of electricity distribution.

Strategic Investments and Reforms

In addition to addressing electricity theft, the government is also focusing on broader reforms in the energy sector. Leghari revealed that discussions are ongoing with Independent Power Producers (IPPs) and the National Energy Administration of China to secure investments and implement crucial changes. One of the key proposals involves converting electricity generation plants from imported coal to local coal, which could significantly reduce electricity costs. The minister noted that this conversion could lower the cost per unit of electricity from 24 rupees to around 8 rupees, making energy more affordable for consumers.

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Another critical aspect of the government’s reform plan is the re-profiling of debt, amounting to $8.5 to $9 billion, which is expected to reduce electricity prices and boost demand. Leghari highlighted that discussions with Chinese bankers are aimed at securing potential investments in Pakistan’s power sector. These strategic moves are part of the government’s vision to not only stabilize the energy sector but also to make it more sustainable and cost-effective.

Enhancing Consumer Services and Accountability

The government’s commitment to improving consumer services in the power sector was also a focal point of Leghari’s address. He assured that electricity companies, particularly in the Multan Electric Power Company (MEPCO) region, will be given the autonomy to retain or dismiss employees based on performance. This move is intended to ensure accountability and enhance the quality of services provided to consumers. Leghari stressed that even a single unit of error in electricity distribution will not be tolerated, reflecting the government’s strict stance on efficiency and transparency.

Leghari also highlighted the Punjab government’s Rs45 billion relief package, aimed at supporting consumers using between 200 to 500 units of electricity. The government is keen on ensuring that this relief reaches every eligible consumer without any discrepancies. The measures being implemented are part of a larger effort to rebuild trust between electricity providers and consumers, ensuring that the public receives reliable and fair service.

Aiming for Long-Term Solutions

As part of its long-term strategy, the government is working closely with power distribution companies to reduce the overall rate of electricity theft, which currently stands at 15.6% in the MEPCO region. Leghari reiterated that electricity theft is intolerable for both the state and the public, and that concerted efforts are being made to eliminate these losses. The introduction of prepaid meters, alongside stringent measures to combat theft, reflects the government’s determination to create a more robust and transparent power sector.

The proposed reforms and strategic investments in the energy sector represent a significant shift towards sustainability and efficiency. The government’s approach aims to not only address immediate challenges but also to lay the foundation for a more reliable and cost-effective electricity supply system in the future. With the implementation of these measures, Pakistan is poised to take a major step forward in securing its energy needs and providing better services to its citizens.