Pakistan Considers Prepaid Electricity Meters to Reduce Power Theft

Mon Aug 26 2024
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ISLAMABAD: Pakistan’s Power Minister Awais Leghari said on Monday that the ruling coalition government is exploring the implementation of a prepaid meter system for electricity, similar to the prepaid systems used for mobile phones.

In a press conference held in Multan, Leghari emphasized the government’s determination to tackle electricity theft in the country. He assured that steps are being taken to address this issue and enhance convenience for electricity consumers.

Leghari disclosed that discussions are ongoing with power distribution companies to ensure the distribution of a Rs45 billion relief package to every consumer. The proposed prepaid meter system, if adopted, would allow consumers to pay for electricity in advance, potentially reducing theft and payment defaults.

Furthermore, the energy minister shared that the government has presented its reform plans and energy vision to the National Energy Administration of China. A significant part of these discussions includes restructuring a debt of $8.5 to $9 billion, which is anticipated to lower electricity prices and boost demand.

Leghari also mentioned that the finance minister and other officials are in talks with Chinese bankers regarding potential investments in Pakistan’s power sector.

Another key aspect of the reform plans involves transitioning electricity generation plants from imported coal to domestic coal. This shift is expected to significantly reduce the cost per unit of electricity.

Four coal plants, including the government-owned Jamshoro plant, are being evaluated for this conversion, with the goal of lowering electricity costs from approximately 24 rupees per unit to around 8 rupees per unit.

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