Islamabad: Caretaker Minister for Energy, Power and Petroleum Muhammad Ali said government is working on Electricity Theft Control Act to curb transmission and distribution (T&D) losses in country.

Addressing media persons here, he shared that Pakistan sustains annual losses to tune of Rs 589 billion due to electricity theft and non-bill payment.

“We are working on an Electricity Theft Control Act, under which we would establish an enforcement infrastructure across country,” said Ali. “Similarly, special courts will be formed as well.

“We target to finalise draft of this law in two to three weeks and move it for approval and implement it as an ordinance. We target to reduce T&D losses as much as possible,” he added.

Sharing background of electricity theft in Pakistan, Ali said that there are 10 distribution companies (DISCOs) in country, with K-Electric having its own distribution network. “Because of these losses, consumers who pay their electricity bills are charged higher rates. “Unless electricity theft and non-payment of bills is controlled, electricity bill cannot be lowered.”

He said T&D losses sustained by distribution companies including IESCO, LESCO, GEPCO, FESCO and MEPCO stand at Rs 100 billion out of total billing of Rs 3,044 billion which shows 3 percent loss.

“On other hand, T&D losses of PESCO, HESCO, QESCO, SEPCO, TESCO and AJK stood at Rs 489 billion, out of total billing of Rs 737 billion, which translates into 60 percent losses,” shared caretaker Minister.

He said that due to uniform electricity rate, customers of sound performing distribution companies are charged higher rates. “We have got all data and we will use it to take our next step. We will initiate crackdown in those areas, where electricity theft is higher,” he added.

“In those areas, where loss is around 30-60 percent, we are considering involving management of private sector. Whereas, enforcement measures would be taken in areas with over 60 percent losses, which consists of 2,085 feeders,” he added.

Provincial level task force will be formed, which will include officers from federal and provincial levels.

Ali said that work on reducing capacity payments is in progress, however, it will take some time. “Caretaker setup is taking initiatives, which involves less time duration,” he said.

Published in The Daily National Courier, September, 07 2023

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