Negative Impact of Power Theft

It is frustrating if you face long power outages despite being a responsible citizen and paying bills on time because you live in an area with a high prevalence of power theft.  Electricity theft and non-payment of bills are two major factors that determine the loss profile of an area. This implies that many power utility companies are compelled to increase the duration of power interruption in such areas.

Federal Energy Minister Awais Leghari recently made a startling revelation that Pakistan suffers a loss worth a whopping Rs600 billion a year due to power theft. According to the minister, there was an annual loss of Rs137 billion in Peshawar and tribal areas. Electricity worth Rs133 billion is being stolen in Punjab, Rs100 billion is being stolen in Balochistan, and excluding Karachi, electricity worth Rs51 billion is being stolen annually in Sindh.

These figures are corroborated in NEPRA State of Industry Report 2023 which states that power distribution companies report significant Transmission and Distribution (T&D) losses. PESCO reported the highest loss in FY 2022-23, at 37.17 % as compared to the target of 20.24%, with a financial impact of Rs77.5 billion. This was followed by SEPCO which 34.39% transmission losses against the target of 17.12%’; and HESCO which incurred 27.49% losses against the target of 18.63%.  Other DISCOs including IESCO, LESCO, and MEPCO also incurred significant transmission and distribution losses. NEPRA reports that most of the DISCOs fell short of meeting the target losses, resulting in an additional burden of Rs. 160.49 billion to the circular debt.  A large portion of these losses are attributable to electricity theft, with illegal connections being a primary culprit.

Citizens typically attribute the shortfall of electricity and load shedding to mismanagement by the government and power distribution companies. One of the main excuses given for power theft is the ever-increasing cost of electricity. It could be argued that individuals, neighbourhoods, and communities should hold each other accountable to higher standards and ensure that the large populace does not suffer due to the selfishness of a few. Customers, local representatives, and community leaders should strictly discourage electricity theft which is not just immoral but a criminal act.

Power utilities regularly conduct drives to reduce the loss of electricity and create a safer community for residents by removing hazards and supports customers in acquiring metered connections. Reducing electricity theft and timely bills payment are imperative for the provision of reliable and uninterrupted electricity. The authorities should address the myriad issues around transmission and distribution losses and take action against power theft.