Government Enlists Pakistan Army to Address Electricity Theft and Losses

ISLAMABAD, PAKISTAN – In a significant move to combat rampant electricity theft and improve revenue collection, the Pakistani government has decided to engage the Pakistan Army in overseeing and monitoring the operations of loss-making electricity distribution companies (Discos).

This initiative aims to curb the widespread practice of electricity theft, which is estimated to cost the national exchequer billions of rupees annually. A team led by a serving brigadier, along with officials from the Federal Investigation Agency (FIA) and the Intelligence Bureau (IB), will be deployed to oversee Performance Monitoring Units (PMUs) established within the Discos.

The PMU team will be tasked with identifying and taking action against individuals involved in electricity theft and corruption within the Discos. This includes those who directly steal electricity as well as those who aid and abet such activities.

“A comprehensive plan has been formulated and awaits approval from higher authorities,” confirmed the Secretary of Power to The News. “However, senior officials in the Power Division have resolved to commence implementation of the pilot project at HESCO (Hyderabad Electric Supply Company).”

The Secretary further explained that the involvement of the Pakistan Army aims to “uncover unscrupulous elements within the Discos and those colluding in electricity theft, causing substantial losses to the national treasury.”

According to data for the financial year 2020-21, the electricity bill recovery rates for HESCO, SPECO, QESCO, and TESCO were 73.7%, 64.6%, 34.66%, and 25.29%, respectively.

In an effort to address the issue, the caretaker energy minister announced a crackdown on electricity thieves on September 6, highlighting the annual losses of Rs589 billion due to theft and non-payment of bills.

As of September 6, the total losses in the Discos with relatively better recovery rates – Lahore, Faisalabad, Gujranwala, Multan, and Islamabad – amounted to 79 billion units, translating to a loss of Rs100 billion out of a billing of Rs3,044 billion, estimated at 3%. Similarly, the Discos in Peshawar, Hyderabad, Sukkur, Quetta, Azad Jammu and Kashmir reported losses as high as 60%.

Given the persistent challenges in achieving adequate results with the loss-making Discos, HESCO, SEPCO, QESCO, and TESCO, the government has opted to establish PMUs headed by a serving brigadier, supported by FIA and IB personnel. This initiative aims to bring a renewed focus and enhanced enforcement capabilities to address the pressing issues of electricity theft and financial losses.

November 29,2023

Source: Geo TV News

By Editor

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