Check on power theft can considerably lower the electricity tariff and help in bridging cost and recovery differential. This was stated by an official of the Ministry of Water and Power before the National Assembly standing committee. Members of National Assembly standing committee on water and power vehemently stressed the need to control power theft, instead of blithely passing on power tariff increase every month to the consumers.
The official of the Water and Power Ministry is reported to have said that decision with respect to power tariff increase was being taken by the Ministry of Finance. A member of the committee said that the official also proposed a fixed amount should be charged from the power consumers not paying electricity charges.
The official of newly established Sukkur Electric Power Company (Sepco) made a startling presentation to the committee about power theft in its circles. He said that in October, 2010, average line losses, that included theft and transmission losses of Larkana, were 38.9 percent, followed by Dadu 38.5 percent and Sukkur 30.7 percent. The overall line losses of Sepco during July 2010 to October 2010 were recorded at 40.6 percent.
The official was quoted as saying that transmission and distribution losses of Sepco were 46.6 percent in the month of July, 2010 followed by 45.77 percent in August, 2010. The losses of the distribution company in September, 2010 were 41.85 percent, and in October 39.77 percent.
The Water and Power body of the National Assembly was told that even theft of conductors from live transmission and distribution circuits was frequently happening and despite being pointed out by Sepco, lodging of FIR with the police was a difficult task. The official complained about non-co-operation of police and district government.
The business environment in rural Sindh is not congenial as employees of Sepco are kidnapped, vehicles are snatched and official are attacked while performing their duties. The major challenges Sepco is facing are frequent transfers and postings of officials due to external pressure, dishonest abstraction of electricity through kunda system, poor payment culture and inadequate help from law enforcing agencies.