The Ministry of Energy (Power Division) on Friday announced the large-scale rollout of smart meters across electricity distribution companies (Discos) in the country, which it described as a “major step” towards improving customer service and operational efficiency.

According to the spokesperson of the Power Division, Zafaryab Khan, metering plays a vital role as the key interface between the customer and the service provider.

“In line with the ministry’s declaration of 2025-26 as the Year of Customer Service Improvement, Discos have embarked on a comprehensive digitalisation drive to modernise their infrastructure,” said a statement by the Power Division.

“This initiative aims to ensure real-time data availability, transparency, and enhanced customer experience.”

Recognising that the pricing of smart meters was a major impediment in this transformation, the Power Division actively intervened to rationalise costs, said the statement, adding that out of nearly 38 million electricity consumers nationwide, around 80 per cent are single-phase users.

The statement pointed out that until recently, the cost of a single-phase smart meter was around Rs20,000, which is “significantly higher than international benchmarks”.

“Through strategic interventions, open and transparent procurement, and continuous monitoring, the price has now been reduced to approximately Rs15,000,” the Division said.

“This intervention alone will result in an estimated annual national saving of around Rs25 billion, considering 5m meter replacements per annum,” the statement quoted the spokesperson as saying.

“The reduced meter cost will also ease the financial burden on consumers applying for smart meters, making advanced technology more affordable and accessible. It is further anticipated that through upcoming international competitive bidding processes, the prices will decline even further.”

According to the division, this intervention will ensure “significant improvement” in the meter reading process because human involvement will be minimal.

“Automated and remote readings will not only enhance accuracy but also build consumer trust in the billing system,” the statement detailed. “The elimination of manual readings will address long-standing concerns about faulty or disputed readings, fostering a more transparent and reliable relationship between consumers and their respective Discos”.

Once deployed, according to the division, smart meters will enable consumers to monitor their electricity usage in real time through mobile applications equipped with modern features. “This will empower consumers to better control their energy consumption and manage their electricity costs.”

Among the benefits for consumers, the division listed the following: real-time monitoring of electricity usage, greater control over energy consumption and billing, accurate, tamper-proof meter readings, and future enablement of prepaid metering services

On the other hand, the division said the benefits for Discos would include remote meter reading and billing accuracy, faster billing and complaint resolution, enhanced visibility and control of the power network, real-time outage detection and quicker fault restoration, as well as improved safety and operational management

“This initiative marks a significant milestone in the Power Division’s continued efforts to digitalise Pakistan’s power sector and provide efficient, transparent, and customer-centric electricity services,” the statement added.

“It is a key step toward the digitalisation of the power distribution system, which remains a crucial part of the ongoing power sector reform agenda of the Government of Pakistan.”

Last year, while chairing a review meeting on the performance of Discos, Prime Minister Shehbaz Sharif had termed overbilling by power utility companies as “unacceptable” and had called for the installation of smart meters to measure electricity use accurately.

According to the PM, these meters would ensure transparency in the billing system.