K-Electric has rebutted some allegations laid out by NEPRA's official. NEPRA Rules and Regulations allow distribution companies to take all legal measures/actions against defaulting consumers for recovery of outstanding dues, statement further added. It also added that there is no specific provision in the law where it states that utility companies cannot disconnect PMTs where paying consumers barely exist.
Instead, Power Policy 2013 announced by Government of Pakistan clearly allows such actions against defaulting consumers. It is pertinent to mention that a major cause of this circular debt's recurrence is due to electricity theft and non-payment by defaulters.
Giving details the statement said that in a city like Karachi where the law and order situation is quite shaky, it is not easy for the power utility to recover its dues. Spokesman KE said, "People think that if out of 10 customers only four are defaulters KE disconnects the PMT which stops supply to the whole lot, but such is not the case. We disconnect the PMT's supply only when the defaulters outgrow the loyal customers by a huge margin, and the losses and the recovery ratio hit rock bottom. There are a number of PMTs, where the paying consumer ratio is barely in single digit and hence calls for aggressive disconnection drives. Such disconnections have also worked in favour of the residents as they realise the consequences of electricity theft. KE before disconnecting the PMT sends endless notices to these defaulting customers, sets up a camp in the vicinity where discounts and easy instalment packages are offered to the defaulters. The area representative is also contacted so that an awareness campaign could be commenced. Sadly, in some cases, people still don't pay their bills and then resort to violence and road-blocks after their electricity supply is disconnected. However, in other parts of the country, no such notices are sent and neither any camps established, and electricity is cut for the residents. It is important to highlight that SBP has appreciated KE's policies on theft reduction and Government of Pakistan also admitted and adopted these policies countrywide.
State Minister for Water and Power time and time again threatens to disconnect the whole feeder, which has an average of 25-30 PMTs on it, if some people don't pay. Disconnecting a whole feeder for one defaulting PMT is far worse than what KE has been doing. On the other hand loyal customers also suffer as overloaded PMTs lead to prolonged power breakdowns.
Spokesman KE added, "KE has been able to convince defaulters and electricity thieves for instalment payment plans and discounted rates after the camps are set up and defaulters are contacted. KE has been installing low-cost meters through a One-Stop Shop in underprivileged areas of Karachi, where electricity theft had been common."-PR