ISLAMABAD – To meet its commitment with the IMF for reducing power sector losses and improve governance, the federal government has directed all the Chief Executive Officers (CEOs) of the distribution companies (DISCOs) to provide affidavit certifying that there is no theft on meters in their respective areas, and warned that providing incorrect information would result in dismissal from service.
The competent authority in this Division has directed that all Discos may obtain certification/verification from their respective SEs, XENs, SDOs, line-man and concerned field staff that there is no theft on meters installed on various tariffs including agriculture, industrial, commercial and residential, said a letter sent by Ministry of Energy (Power Division) to electricity Distribution Companies.
The letter, titled Certification and verification field formations from Discos, available with The Nation, said the Chief Executive Officers (CEOs) shall submit such certification/verification on behalf of their respective field formations to Power Division at the earliest. Further, all the CEOs may ensure that the said verification/certification is accurate and correct as the same would be cross checked.
In case of any inconsistency or contradictory evidence found on checking strict disciplinary action, including, but not limited to dismissal from service, shall be taken against such delinquent defaulting officers/officials.
It is worth to note here that Pakistan has assured the International Monetary Fund (IMF) that it will create a dedicated police force for all power distribution companies (DISCOs) and recognize electricity theft as a cognizable offense which is necessary for improved DISCO governance and enforcement capability.
Theft/losses of electricity and less recoveries of bills are the main contributors of circular debt accumulation. In 2022-23, ex-Wapda Distribution Companies (XWDISCOs) had caused a loss of over Rs 838 billion to the national exchequer/consumers on account of transmission distribution losses and under recoveries.
The losses of over Rs 838 billion include Rs 533.52 billion of transmission and distribution losses on account of losses/theft and approximately Rs 305 billion on account of under recoveries. In 2022-23, Discos incurred transmission and distribution losses of Rs 533.52 billion, out of which Rs 353.52 billion is within the target limit, and was charged from the consumers in their electricity bills, while the remaining Rs 160 billion, which are over and above the Nepra approved target, will be added to the circular debt.