Smart meters' prices slashed by up to 40%: energy minister

ISLAMABAD: Federal Minister for Power Awais Ahmed Khan Leghari on Monday said that the prices of smart meters for power distribution companies (Discos) have been reduced by up to 40%.

In a statement, the power minister said the move would generate estimated annual savings of Rs150 billion at the national level.

He stated that the adoption of transparent and internationally competitive procurement processes has reduced the price of a three-phase smart meter from around Rs45,000 to Rs25,000, 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 Rs7,000. 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, he added.

 Leghari added that continuous monitoring and 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to the federal minister, the estimated annual savings of Rs150 billion are based on the replacement of defective and outdated meters by power distribution companies.

In addition, the installation of new meters would provide further financial relief to electricity consumers, the minister said, adding that this benefit would be reflected in lower costs shown in demand notices for new connections.

He added that lower smart meter prices would speed up digitalisation in the power sector and further improve the performance of the national grid.

The minister further said that smart meters would 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.