Billing systems, not just power theft, have become the latest focus of Pakistan's energy overhaul. On Thursday, Prime Minister Shehbaz Sharif ordered a comprehensive technical audit of distribution companies' billing mechanisms, signaling a shift toward systemic fixes in a sector long plagued by losses. Main Developments Presiding over a power division review meeting, Sharif tied the audit to broader reforms, calling smart meter installation "indispensable" for the sector's turnaround. He directed strict anti-theft measures across all levels, alongside clear performance indicators and integrated targets with defined timelines. Incentives are also on the table. The prime minister announced that the best-performing Disco would receive formal recognition and an award, aiming to spark healthy competition among the companies. For rural areas, he ordered village-level solarisation projects, arguing decentralized solar solutions could relieve pressure on the national grid. Read also: Punjab Floods: Rescue Ops Expand as 94 Villages Remain Underwater Officials reported gradual declines in technical and commercial losses, with Islamabad, Lahore, and Gujranwala electric supply companies recording the lowest transmission and distribution losses last fiscal year. Five companies—IESCO, LESCO, GEPCO, FESCO, and MEPCO—achieved 100% recoveries in fiscal year 2025-26. To bolster enforcement, Disco Support Units have been established in Hyderabad, Sukkur, Lahore, Multan, and Hazara. The first phase of an Asset Performance Management System (APMS) at transformer level is slated for completion by September 30, which officials say will curb both theft and load-shedding. Background The audit follows years of mounting circular debt and inefficiencies in Pakistan's power sector, where Discos have historically struggled with theft, poor recovery, and aging infrastructure. Smart metering has long been touted as a solution, but rollout has been slow due to cost and logistical hurdles. Earlier reforms focused on tariff rationalization and anti-theft drives, yet billing inaccuracies have persisted, undermining revenue. The new directive marks a deliberate pivot toward backend systems, acknowledging that metering and billing integrity are foundational to any turnaround. Why It Matters For consumers, accurate billing could mean fairer charges and fewer disputes, while reduced losses may ease pressure for tariff hikes. For the government, curbing theft and improving recoveries are critical to shrinking circular debt, which has strained fiscal resources and deterred investment. The village solarisation push also hints at a strategic shift: decentralizing power generation could lower grid dependence, particularly in rural areas where load-shedding is acute. If successful, these measures could stabilize the sector and improve service reliability nationwide. What's Next With the APMS first phase due by September 30, implementation will be a key test. Officials are also considering installing 16.2 million single-phase Advanced Metering Infrastructure (AMI) meters across Multan, Lahore, Peshawar, Hazara, and Quetta, though no timeline has been set. The audit's scope and findings remain undisclosed, but performance indicators and integrated targets are expected to be defined soon. Whether the prime minister's incentives and directives translate into tangible improvements will depend on execution speed and Disco cooperation.