Govt plans crackdown on electricity theft

ISLAMABAD: Power Minister Muhammad Ali announced on Wednesday that the government is taking decisive steps to combat electricity theft in Pakistan.

The announcement comes as part of a broader effort to reduce transmission and distribution (T&D) losses plaguing the country’s power distribution companies.

The Power Minister revealed that Pakistan faces annual losses amounting to Rs589 billion due to electricity theft and non-payment of bills. In response to this issue, the government is actively working on the Electricity Theft Control Act, aimed at establishing a nationwide enforcement infrastructure and special courts.

“We intend to finalize the draft of this legislation within two to three weeks and implement it as an ordinance to curb T&D losses,” stated Ali during a press conference along with Information Minister Murtaza Solangi in Islamabad.

Nationwide campaign launched against electricity theft

Ali also highlighted the fact that various distribution companies, known as Discos, in Pakistan experience differing levels of theft and bill recovery. In some regions, losses reach alarming levels, resulting in higher electricity bills for honest consumers.

The government is taking a multi-pronged approach to tackle this issue. In areas with lower theft rates (up to 30%), technological interventions will be employed, while private sector involvement is being considered for areas with losses ranging from 30% to 60%. For regions where losses exceed 60%, strict enforcement measures will be initiated.

The Power Minister emphasized the government’s commitment to improving the management of Discos and indicated plans to make changes to their board of governors and management.

To implement these measures effectively, the government is collaborating with provincial authorities and law enforcement agencies. Taskforces at various levels, including provincial, divisional, district, and tehsil, will be established to oversee and enforce anti-theft efforts. These taskforces will include key officials such as home secretaries, energy secretaries, and police officers.

Monitoring of anti-theft operations will be centralized through a control room and dashboard at the Power Planning and Monitoring Company (PPMC) in Islamabad.

Additionally, the government is actively working on the new Electricity Theft Control Act, which will establish an enforcement infrastructure nationwide and introduce special courts for complaints and penalties. The draft of this act is expected to be finalized for approval in the coming weeks.

Regarding other power-related matters, the Minister acknowledged ongoing efforts to reduce capacity payments and mentioned that the government is exploring options for provincialization and privatization of Discos, with a decision expected to be made in consultation with the cabinet.

The government’s commitment to ending electricity theft and reducing T&D losses is evident in its comprehensive approach, aimed at ensuring a more equitable and efficient electricity distribution system in Pakistan.