The government unveiled a robust plan on Wednesday to tackle the rampant electricity theft, a menace causing losses of hundreds of billions of rupees and escalating bills for the common populace. Federal Ministers Muhammad Ali and Murtaza Solangi delineated the forthcoming steps at a press briefing in Islamabad. The plan is set to unleash a “full force” offensive against power theft to minimize the increasing technical and commercial damages power distribution firms encounter.
The ministers highlighted that the power theft problem has been intensifying, with some consumers either pilfering electricity or neglecting bill payments, imposing a financial burden on other citizens. The current loss stands at Rs 589 billion annually, necessitating urgent intervention.
Ali shed light on the regional discrepancies in power theft and recovery rates. While cities like Lahore and Islamabad have relatively lesser losses, other regions record losses up to 60%. The initiative aims to leverage data in these areas to focus efforts more efficiently, targeting regions with higher theft rates for a stringent crackdown.
Measures and Legal Framework
To address this, the government is strategizing on multiple fronts. In areas with theft rates up to 30%, technological interventions will be employed to curb theft. For regions where the loss rate fluctuates between 30 and 60%, the possibility of engaging the private sector for management is under consideration. A more aggressive enforcement approach is reserved for zones where the losses exceed 60%.
Furthermore, the administration is spearheading changes in the management of Distribution Companies (Discos) and planning to overhaul their board of governors. A list of officers found to be complicit in electricity theft has been drafted, with plans to transfer them from field positions pending approval from the Election Commission of Pakistan.
On the legislative front, a new law is being crafted to fortify the crackdown against electricity theft. This proposed law envisions establishing a strong enforcement infrastructure nationwide and setting up special courts to expedite the hearing of complaints and imposing penalties. The draft of this law is expected to be ready for approval within the coming weeks.
Simultaneously, the government contemplates the provincialization and privatization of Discos to streamline operations and minimize losses. The Power Division Secretary, Rasheed Langrial, indicated that an Initial Public Offering (IPO) might be on the cards for three companies currently grappling with massive losses due to theft and line losses. This move, however, requires significant groundwork to make the companies “privatisation ready”.
