‘Power theft major issue behind circular debt’

ISLAMABAD: Country is braving the huge loss of Rs80 billion per annum just in the head of electricity theft which is one of the main factors that is contributing to the mammoth circular debt in the power sector which has now surged up to Rs1.316 trillion, Secretary Power Division Irfan Ali, in an exclusive talk here on Thursday evening, told The News.He said that the payable of CPPA (central Power Purchase Agency) have spiked to Rs734 billion and the loans and liabilities of the power sector parked in the PHPL (power holding private limited) stand at Rs582 billion.

“Although there are many causes for the surge in circular debt, but theft has emerged as the biggest one. Alone in KP, which is jurisdiction of Pesco (Peshawar Electric Supply Company), electricity theft stands at Rs3-4 billion meaning by that in 12 months system sustains the loss of Rs48 billion at the maximum just in Pesco. Some portion of AJK also falls in the jurisdiction of Pesco. However, there is no need to lose heart as the government has braked upon a countrywide effective operation across the country against the menace of electricity theft,” Mr Ali said and added, “The Discos staff is also indulged in helping the unscrupulous elements to steal the electricity in various ways which include Kunda, direct connections and meter tampering. And to this effect, 16 officials of Lesco (Lahore Electricity Supply Company) have been nabbed, and, at present, they are being probed to find out main culprits.” The drive that has been launched in all federating units will start fetching the dividends after span of 6 months. To a question, Mr Ali said that the operation against the electricity theft has now been proliferated from three districts to the whole province. The multi-pronged strategy is being adopted to cope with the challenge of circular debt which includes bringing down the line losses, increasing the recovery and erasing out the electricity theft.

The government has increased the electricity tariff which will not be approved and notified within next week as the quorum of Nepra has got completed. Nepra has already held the hearing of the government petition seeking the uniform tariff under Nepra amended act, but with the notification of Member in Nepra from Sindh the quorum has got completed which was earlier broken down when Nepra chairman’s tenure was completed, and he got retired and at that time Punjab Member and Balochistan member were left in the Nepra. The quorum gets completed with at least three members. After tariff approval and notification, the new tariff with raise by Rs1.27 per unit will be implemented, and the bleeding in power sector to some extent will get halted. He said in areas of loss making feeders in Sindh, 70-80 percent electricity theft is observed.

Many XENs and SDOs have been suspended and CEOs of the Sepco and Hesco have been ordered to swing into actions themselves against the culprits. Mr Ali sharing the reports about electricity theft in jurisdiction of Sepco and Hesco said that authorities have found many plazas over there with direct electricity connections having residential flats with 4 ACs each. Mr secretary said that there is zero tolerance against theft and no one, involved in electricity theft whether he is influential or not, is being spared. He disclosed that on Thursday, Mepco authorities busted the meter reversing gang. “As many as ten meters, 4 laptops, remote controls and other equipment has been confiscated from the possession of the gang.” According to the data available with The News about electricity theft in report with the headline of Quantum of Theft of Electricity in nine public sector Discos during the period from July 2017 to March 2018 also showed the alarming disclosure revealing that in 9 month of 2017-18 system sustained loss of Rs59.174 billion.