EDITORIAL, Getting priorities backwards; smart meters

[ziaulislam]

Money for smart meters
By Editorial
Published: May 17, 2015
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Why on earth would the government want to refuse money for a project that would go a long way towards reducing electricity theft in the country? STOCK IMAGE

When it comes to money, it seems Islamabad is hell bent on getting its priorities backwards. The latest example of this mentality is the government’s refusal to take up the Asian Development Bank’s offer of a $1 billion loan to finance the installation of smart meters. We find ourselves baffled by the finance ministry’s stance. Why on earth would the government want to refuse money for a project that would go a long way towards reducing electricity theft in the country?

The government’s argument is that it is about to sell the state-owned electricity distribution companies off to the private sector and, therefore, does not want to take on the loan for companies it will soon not own anyway. This argument falls flat on its face when one considers the fact that the government could simply put the loan on the books of these power companies, which would then go off the government’s own balance sheet once the companies are sold. No investor buying the companies would refuse cheap debt that also happens to go a long way towards reducing losses and improving operational efficiency at the company it is about to buy. This loan is a win-win for the government and for any prospective buyer, and the finance ministry’s refusal to take it is a case of incompetence.

One last thing: the government’s argument that it does not want to invest in companies that it currently owns is a highly disingenuous argument on its own. Even if it plans to sell them off, it currently owns them and, therefore, has a fiduciary responsibility to run them as best as it can during the period of its ownership. That the Nawaz Administration is refusing to do so means that its approach is hardly any better than that of its political rivals. The only difference is that the PML-N wants to privatise companies that run up losses instead of keeping them on the government’s budget. That does not necessarily make the party more competent at governing; just a little more realistic.

Published in The Express Tribune, May 18th, 2015.

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[Dr. Strangelove]

wow just wow

 

[I FLY HIGH]

How can this smart metre get rid of Kundas and non payment and non recovery which are our prime problems?

 

[I.R.A]

Because major theft involves their paiti bandh bahis.

 

[Dubious]

The government’s argument is that it is about to sell the state-owned electricity distribution companies off to the private sector and, therefore, does not want to take on the loan for companies it will soon not own anyway.

But it is willing to cry about the electricity theft and deprive the people of electricity because the govt cant catch the thieves? Well played!

Even if it plans to sell them off, it currently owns them and, therefore, has a fiduciary responsibility to run them as best as it can during the period of its ownership.

 

[ziaulislam]

How can this smart metre get rid of Kundas and non payment and non recovery which are our prime problems?

smart meters is system that grids every part of distribution system if there is a kunda it would be found out where the location is and obvious thief is usually within 10-20 meters of that area. all the data is in REAL TIME so you can send monitor teams as soon as kunda is online

this news has been there for last 2 years repeatedly

 

[Spring Onion]

the USAID has i think also provided assistance for smart meters in KPK.

 

[Kabira]

Smart meters are way forward, especially in areas where theft is rampant.

 

[I FLY HIGH]

smart meters is system that grids every part of distribution system if there is a kunda it would be found out where the location is and obvious thief is usually within 10-20 meters of that area. all the data is in REAL TIME so you can send monitor teams as soon as kunda is online

this news has been there for last 2 years repeatedly

that is really good , it is a good way forward . It must be put in pesco, mepco , hesco , and sesco on priority basis. it can improve the theft so it would be easier to privatise these Discos.