Muhammad Saleem

The business community of Faisalabad has suggested some steps to curb the rampant electricity theft to provide relief to legitimate consumers.  In this regard, the Faisalabad Chamber of Commerce and Industry (FCCI) Senior Vice-President Dr Sajjad Arshad has said the consumers of Faisalabad Electric Supply Company (Fesco) were in a fix as they continued to receive hefty bills despite the power utility’s recoveries were 99.2%.   “The impact of the line losses of other electricity distribution companies is being passed on to the consumers of Fesco, which is unjust to them,” he regretted.  According to a Bloomberg report, “Power theft is pervasive throughout emerging markets, but Pakistan ranks among the worst in Asia. Around 17% of all electricity distributed in the country ends up lost or pilfered, according to the National Electric Power Regulatory Authority, and the rate is as high as 37.5% in some areas.”

Arshad said the only solution to electricity theft was to set up an electricity market where consumers could buy the units from the companies of their choice.  “Competition among different companies will help Pakistan avoid electricity-related issues and cut its rates,” he said, adding healthy competition of independent power producers was the need of the hour.  “All segments of society, including commoners, traders, exporters and mill owners, are perturbed over the surging prices of electricity as high energy costs are ruining businesses,” Arshad noted. Briefing the National Assembly’s Standing Committee on Energy (Power Division) in February, then secretary Power Division Rashid Langriyal claimed that electricity worth Rs380 billion was pilfered in 2022. He said kundas (illegal hooks) were used to steal electricity of Rs200 billion.  Sajjad Arshad, the FCCI senior vice-president, said due to the poor performance of other Discos the consumers of Fesco were bearing the brunt. 

He said consumers should not be made to bear the consequences of circular debt and inefficiency of Discos.  “Countries the world over are fast adopting renewable and clean energy, and Pakistan should also fast-track the transition to clean sources of energy to provide affordable units to consumers,” Arshad suggested.  Nadeem, a member of FCCI, said free electricity facility being provided to Wapda officials should be withdrawn immediately to provide some relief to consumers.  He regretted that instead of making power companies’ officials pay the bills, the government had announced a cash incentive for the employees. He said during a recent meeting with Wapda officials, FCCI members also raised such issues. A Fesco official said a crackdown was underway on people involved in power theft, and heavy fines were imposed on such elements.

The official admitted that circular debt and power pilferage were hitting the power sector hard, increasing the financial burden on consumers. Abdul Waheed, a power loom owner, said the high cost of raw materials and electricity were buffeting the business activities. He said by curtailing the power pilferage, the government could pass on the benefits to legitimate consumers. He said like the cellular companies, the government must introduce the pre-paid packages for electricity consumers.  “Pre-paid unit strategy will help arrest power theft. However, relevant officials won’t support this idea because of their vested interest. Electricity theft is not possible without the involvement of officials of power companies,” Waheed claimed. 

Credit: INP-WealthPk