The Lahore Electric Supply Company (LESCO) has begun testing prepaid electricity meters in Lahore. LESCO Chief Engineer Muhammad Ramzan Butt told media that the system works like mobile phone credit. Consumers load balance into their meters, and electricity flows based on the available credit.
Two prepaid meters have been installed in Allama Iqbal Town as part of a pilot project. Users will have full control over their consumption. They will be able to limit usage during peak hours, use their loaded balance in as few as six days, or stretch it to a full month depending on how they manage their power.
Butt said the initiative is aimed at addressing one of the most persistent complaints from electricity consumers in Pakistan: overbilling.
With a prepaid system, there is no monthly bill estimate or meter reading dispute. You pay for what you use, in advance. He added LESCO is also outsourcing some additional services to reduce difficulties consumers face when accessing support.
The pilot comes alongside a broader push by the federal government to modernize Pakistan’s power metering infrastructure. According to the Ministry of Power Division, LESCO has been tasked with replacing 350,000 traditional three-phase meters with Advanced Metering Infrastructure (AMI) smart meters. Pakistan Tribune reported in September 2025 the government plans to complete a full nationwide transition to smart metering by December 2026. Energy Update reported on April 1, 2026, LESCO has accelerated its smart meter rollout as part of this effort.
The prepaid meter concept differs from the AMI smart meters already being deployed. Smart meters provide real-time data to the utility and help detect theft, while prepaid meters shift billing control entirely to the consumer. Both systems aim to reduce the financial losses distribution companies face from theft and inaccurate billing, losses currently passed on to paying customers through higher tariffs.
Overbilling has been a longstanding issue for much of the Pakistani consumers over the years. LESCO’s own “Apna Meter, Apni Reading” program, launched to let consumers self-report readings, came after 68% of complaints between January and April 2025 cited inflated bills from estimated readings.
No timeline has been announced for expanding the prepaid meter system beyond the two pilot units in Allama Iqbal Town. LESCO has not disclosed the cost per meter or whether consumers will need to pay for the upgrade.
