Since late 2023, the government has been cracking down on electricity theft across the country, which has long been a thorn in Pakistan’s energy sector, draining billions from an already struggling economy. Interestingly, the caretaker PM made the first announcement on 6th September, remembered as Defence Day – as if an implicit indication that the next frontier for Pakistan’s protection was against the operational inefficiencies and kundas that were contributing to high losses.
However, one year after the launch the entire movement appears to be in jeopardy. On the one hand, the PM is announcing that there needs to be a “whole of government approach” to eradicate electricity theft. On the other hand, the legislature has failed to convert the presidential ordinance into formal law, cementing the writ of the government and the power sector. This current dallying approach is instead rendering the distribution companies toothless and unable to clamp down on the estimated 600 billion rupees of annual power theft.
The watershed moment in the crackdown came in December 2023, when President Arif Alvi took a bold step by invoking the constitution and issuing an ordinance amended Section 462 (O) of the Pakistan Penal Code, making electricity theft a cognizable offense.
The move empowered distribution companies to execute severe penalties for those caught stealing electricity. These included up to three years of imprisonment, fines reaching three million rupees, and hefty detection bills that could cover up to 60 months of power consumption for repeat offenders.
The ordinance also allowed DISCOs to confiscate equipment used in theft, a move expected to deter would-be offenders. Various reports indicate that as many as 168,000 cases of theft and almost 1000 FIRS have been lodged against power theft thus far in Karachi alone.
Daily reports are also coming in on the number of theft cases detected and arrests made across the country. The need of the hour is tougher governance and long-term policies. The tough talk on electricity theft needs to be matched by solid legal frameworks to shift the sector away from ad-hocism. Power theft is a multifaceted problem. It exponentially increases safety hazards and skyrockets line losses.
These line losses are growing the gap of circular debt, which are eventually financed by customers in the form of surcharges. Straining the financial health of DISCOs and jeopardizing the country’s energy security without a robust legal framework and consistent enforcement will only exacerbate the burden on an already fragile economy.
Effective legislation can also support the DISCOs inch closer to the regulator’s expectations of 100% recovery. Such ambitious goals are only possible with the right deterrence mechanisms in place. Amid current economic conditions, sources are also sharing that the Power Division is working on the PM’s instructions to redefine load-shedding based on aggregated techno-commercial losses.
The Power Division formed an extensive committee including officials from PPIB, CPPA, NEPRA, Law Division and others. They have deliberated and shared a report to amend the NEPRA Act, the Performance Standards, and drafted a bill for Parliament. Last reports indicate the matter is with the Cabinet Committee on disposal of Legislative Cases (CCLC), before it will reach the Cabinet and then Parliament floor.
So, clearly, where there is a will there is a way. On this multi-level issue, we need to see more will. The ordinance must be passed into law to provide the necessary legal backing for sustained enforcement. The time for half-measures is over. It’s time for the government to back its words with actions and deliver on its promise to curb electricity theft.
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