What’s happening in the power sector?
The government of Pakistan is spearheading a major rollout of smart meters, replacing traditional analog electric meters across distribution companies (DISCOs). The Power Division recently announced that it has declared 2025-26 as the “Year of Customer Service Improvement”, and smart metering is a core part of that drive. The aim: make billing accurate, reduce theft, and give consumers more control.
Why smart meters matter now
For many years, Pakistan’s power distribution relied on manual meter readings, which left lots of room for error, theft, and billing disputes. A study by the Pakistan Institute of Development Economics (PIDE) showed that households using smart meters could reduce their bills by up to 17%, while DISCOs improved revenue collection significantly. With nearly 38 million electricity consumers nationwide, and about 80 % being single-phase users, the scale of the challenge and opportunity is huge.
Key features of the rollout
Cost reduction & scale
- The cost of a single-phase smart meter has been reduced from approximately PKR 20,000 to about PKR 15,000 through procurement reforms.
- This reduction is projected to generate annual national savings of around PKR 25 billion, assuming ~5 million meters replaced each year.
What these smart meters enable
- Real-time (or near-real-time) meter readings and data transmission via digital networks.
- For consumers: mobile apps or portals where you can monitor your consumption, see usage patterns, and perhaps sooner adopt prepaid models.
- For DISCOs: better visibility of load, faster problem detection, less human error or tampering, more accurate billing.
Phased implementation – how & when
- One of the major DISCOs, Lahore Electric Supply Company (LESCO), plans to shift its entire region (6.7 million connections) to advanced metering infrastructure (AMI) by 2029.
- The federal Power Division has instructed DISCOs to start replacing three-phase and single-phase meters; for example, the three-phase replacement deadline has been set for December 2026 in some cases.
Implementation table
| Phase | User-type | Time-frame / Target | Primary benefit |
|---|---|---|---|
| Pilot & small industry | Selected feeders / small industrial units | Already underway (LESCO replaced ~60k+ meters) | Theft reduction & billing accuracy |
| Domestic single-phase rollout | Majority of consumers (~80%) | From 2025 onwards, through 2026-29 | Real-time data, consumer engagement |
| Nationwide full roll-out | All DISCO regions | Ongoing multi-year plan up to 2029 | Sector wide transformation |
Consumer benefits (and what you’ll actually see)
- Monitoring your electricity usage via an app or web portal, so you know when you use more and why.
- More accurate bills, fewer surprises from estimated readings.
- Potential shift to prepaid metering in future, meaning you pay for what you use, not what’s estimated.
- Reduced risk of tampering and illegal connections, helping keep tariffs stable for all.
Utility / Government benefits
- Better revenue for DISCOs by plugging losses and theft, studies report significant savings: e.g., MEPCO saw PKR 2.2 billion extra revenue after ~150,000 smart meters.
- Faster fault detection and outages management via remote data.
- A more modern grid infrastructure, lay the groundwork for renewables, smart-grid integration, demand-side management.
Challenges to watch
- Upfront cost: Even though the cost per meter is falling, replacing millions of meters is a large investment.
- Consumer acceptance & awareness: A PIDE survey found that consumer education is vital for smart meter deployment success.
- Ensuring interoperability, data privacy, and fault-free operations: smart meters bring tech complexity.
- Integration with existing systems and loading, legacy infrastructure must be upgraded.
What should you do as a consumer?
- Stay informed, watch announcements from your DISCO about when your area will be upgraded.
- Ensure correct installation, check for tampering or damage when your meter is replaced.
- Ask for access to any mobile/online portal offered so you can monitor your usage.
- If you notice billing anomalies after the meter change, ask for explanation from the DISCO.
- Adjust your consumption habits, since now you may see real-time data, you’ll be able to spot high-usage periods and optimise.
FAQs
- What is a smart meter?
It’s a digital electricity meter that records usage in real time (or near-real time) and sends that data back to the utility automatically, without manual reading. - What’s the difference between smart meter and the old meter?
The old meter needed manual reading; smart meter transmits data automatically, enables better accuracy, and supports more advanced services. - Will my electricity bill go up after installation?
Not necessarily, while your bill may reflect actual usage (rather than estimates), the main aim is accurate billing, not higher bills. Some consumers reduce consumption when they monitor it. - How much will the new meter cost me?
The government has negotiated single-phase smart meters at about PKR 15,000 each. - Is smart meter installation mandatory?
Yes, DISCOs are instructed by the Power Division to replace traditional meters system-wide. - How soon will I get the new meter?
It depends on your area. Some DISCOs have targets up to 2029 for full rollout (for example LESCO’s region). - What if I find an error in my meter reading?
You should contact your DISCO’s customer service immediately and provide details; with smart meters, readings are remote but still subject to verification. - Will the smart meter support prepaid billing?
Yes, one of the benefits listed is that smart meters enable future adoption of prepaid billing. - What happens to meter readers?
The manual reading role is expected to reduce over time; some functions may shift to other roles (maintenance, network monitoring) but the specific workforce plan is up to individual DISCOs. - Will this help reduce power theft?
Yes, studies and early implementations show significant drop in theft and improved revenue collection when smart meters or AMI systems are deployed.
Conclusion
The smart meter revolution in Pakistan is more than just a change of device, it’s a shift toward transparency, efficiency and consumer-empowerment in the power sector. If you’re a consumer, you should welcome this change but also stay informed and involved. With the right practices and cooperation from utilities, this transition can bring tangible benefits to households, businesses and the national grid. Let’s keep an eye on the rollout in our region and make the most of this new era.
