ISLAMABAD: The Islamabad Electric Supply Company (Iesco) has proposed advanced metering infrastructure (AMI) aimed at enhancing the distribution system’s efficiency.
“The total cost of the project is Rs16,930 million, of which Rs3,330 million is proposed in the 2022-23 budget,” according to Eng Muhammad Amjad Khan, the Iesco chief executive officer, according to WealthPK.
He believes the project will contribute to improving the electricity supply system of the power distribution company, which already has a robust recovery mechanism. He said the AMI technology can be applied to other distribution companies (Discos) with high losses.
Mazhar Iqbal Ranjha, Director of the National Electric Power Regulatory Authority (Nepra), said “There is a trend among energy companies throughout the world to automate their services. The implementation of AMI will enable greater efficiency, while also providing a better user experience to our valued clients.”
According to him, Nepra continually emphasizes real-time monitoring and that such automated systems can be helpful in ensuring that regulatory instruments are effectively and efficiently enforced.
The AMI system has smart meters as core devices. According to Karachi Electric representatives, automated meter reading (the first step towards auto-billing), is a system of power quality monitoring, and load management through the availability of timely and accurate information.
Additionally, the AMI would enable a better customer experience, according to Iqbal Ranjha. However, there are challenges in implementing the AMI system, which needs to be overcome to help Pakistan minimise the losses in the energy sector due to low infrastructure development.
The country’s circular debt in the energy sector has reached Rs2.47 trillion. Infrastructural losses, massive subsidies and capacity payments are the major factors contributing to the menacing circular debt, according to WealthPK.
These losses are divided into two categories: technical and non-technical. Losses in electricity transmission and distribution (T&D) cannot be eliminated but can be curtailed. According to the State of Industry Report 2021 by Nepra, Hyderabad Electric Supply Company (Hesco), Peshawar Electric Supply Company (Pesco) and Sukkur Electric Supply Company (Sepco) have the highest T&D losses with 38.55%, 38.18%, and 35.27%, respectively.
Though the country’s generation capacity has been increased at a large scale under the China-Pakistan Economic Corridor (CPEC), the transmission and distribution system remains to be upgraded.
An efficient recovery system is one of the key elements that positively contribute to the electricity sector development as it helps offset the effects of T&D losses. According to former finance minister Miftah Ismail, 12% of electricity consumers in Pakistan do not even pay the bills.
With a 100% recovery Iesco stands atop, while Quetta Electric Supply Company has the lowest recovery rate of just 39.8% among all Discos.
INP
