Govt announces plans to switch off theft-hit transformers instead of feeders

ISLAMABAD: The federal government has announced plans to introduce a system that would allow theft-hit electricity transformers to be switched off to curb power theft, instead of shutting down entire feeders.

The move is aimed at avoiding shutdowns of entire feeders and limiting disruption to law-abiding and bill-paying consumers, Federal Minister for Energy (Power Division) Awais Leghari said on Wednesday.

In a statement, the minister said that the new system would allow power distribution companies to disconnect only the transformer where electricity theft was detected instead of shutting down the entire feeder supplying multiple transformers.

“There will be no need to shut down the whole feeder,” Leghari said, adding that only the transformer on which electricity theft was detected would be switched off under the proposed system.

The regulatory framework for the new mechanism is expected to be introduced by April or May next year, he said.

Electricity theft and losses in the distribution system have long been a major challenge for Pakistan’s power sector, putting pressure on utilities’ finances and contributing to the cost of electricity supplied to consumers.

Distribution companies have traditionally used feeder-level load management in areas with high electricity theft or losses.

Under that approach, consumers who pay their bills can also face power cuts because the entire feeder is switched off.

The proposed transformer-level system is intended to make the response more targeted by isolating areas where theft is detected while keeping electricity flowing to other consumers connected to the same feeder.

Leghari also rejected suggestions that the government was imposing additional load-shedding, saying there was no additional electricity load-shedding in the country.

He said changes to the net-metering system had also prompted some consumers to install batteries, affecting patterns of electricity consumption.

Pakistan has been seeking to reduce losses in its power distribution network as part of wider efforts to improve the financial sustainability of the electricity sector.

High transmission and distribution losses, electricity theft and poor recovery of billed amounts have remained persistent problems for the country’s distribution companies.

Fuel adjustment falls in August

Leghari earlier said that the Power Division’s measures had helped reduce the monthly fuel adjustment for electricity consumed in August 2026, lowering the additional financial burden on consumers and saving Rs10 billion.

He said the fuel adjustment for August stood at Rs1.73 per unit, down from Rs2.581 per unit in July.

According to the minister, the August adjustment had fallen from below Rs2.50 per unit, resulting in savings of Rs10 billion.

Leghari thanked consumers for cooperating with the government’s efforts to manage the power system, particularly by accepting several hours of load management during night-time periods.

He said consumers had supported government efforts to reduce electricity costs despite difficult conditions in the power sector.

The government has been under pressure to address structural problems in the electricity sector while containing tariffs and reducing the financial burden on consumers. Measures to curb theft and distribution losses are central to efforts to improve the sector’s efficiency and reduce the need for broader power cuts.