Govt to audit Discos to identify causes of power theft, technical and commercial losses

AI Summary

The government of Pakistan has decided to conduct a technical audit of all former Wapda distribution companies to identify causes and geographic concentrations of power theft and technical losses. The audit aims to provide actionable findings to reduce electricity theft and distribution inefficiencies without burdening consumers, with a focus on advancing metering infrastructure and solarization pilot projects in high-theft areas.

ISLAMABAD: The government on Wednesday decided to conduct a comprehensive technical audit of all former Wapda distribution companies (Discos) to determine the actual scale, causes and geographical concentration of power theft, as well as technical and commercial losses. The decision was taken at a meeting of a special committee constituted by the prime minister on Inefficiencies and Electricity Theft in Discos to review measures to curb electricity theft, reduce distribution losses and improve the performance of power distribution companies. Minister for Economic Affairs Ahad Cheema and Minister for Power Division Sardar Awais Ahmad Khan Leghari co-chaired the meeting. The committee was given detailed briefings by the Power Division, National Electric Power Regulatory Authority (Nepra), Ministry of Information Technology and Telecommunication, Pakistan Digital Authority (PDA) and other relevant institutions on power theft, distribution losses, recoveries and technology-based interventions in the power sector. The IT ministry was assigned the responsibility of providing technological assistance and facilitating the technical audit through a transparent and credible mechanism. An expression of interest (EoI) will be issued shortly to engage suitably qualified technical experts for the exercise. The meeting decided that the terms of reference for the technical audit would be finalised by next week. The meeting also discussed the impact of the Advance Metering Infrastructure (AMI) initiative and decided to continue and expedite the installation of AMI meters, even in Discos earmarked for privatisation, to ensure that new private buyers did not resort to overbilling to the disadvantage of consumers. Cheema stressed that the audit must include a comprehensive diagnostic analysis of the underlying causes of power theft and losses and produce credible and actionable findings. “The government is fully focused on reducing electricity theft. Under no circumstances will the burden of power theft or inefficiencies within the distribution system be shifted to the people. Overbilling is completely unacceptable,” he was quoted as saying. He said the findings of the technical audit would enable the government to take targeted and evidence-based measures to reduce power theft and distribution losses. He reiterated that every possible step would be taken to prevent any further increase in circular debt. Leghari said the Power Division was fully aligned with the objectives of the committee and was actively working to control theft and losses, particularly in Discos where the incidence of electricity theft remained high. The committee was also briefed on incentive-based solarisation pilot projects in areas served by Peshawar Electric Supply Company (Pesco) and Quetta Electric Supply Company (Qesco), where power theft and distribution losses are particularly high. The initiative aims to provide solar energy solutions to reduce pressure on the electricity network and help address persistent theft and line-loss issues. The committee reviewed technology-based measures being undertaken and emphasised the effective use of digital tools and reliable data to detect irregularities, improve monitoring and strengthen accountability across the distribution network. Both ministers noted the progress made in addressing overbilling but made it clear that any attempt by a Disco to conceal theft, losses or operational inefficiencies through excessive billing would not be tolerated. Consumers must not be made to pay for weaknesses within the distribution system. The committee also reviewed the recovery performance of the Discos and expressed satisfaction over the improvement recorded during the current year. They agreed that this momentum must be sustained through better governance, stronger monitoring, technology-driven reforms and targeted action in high-loss areas. Prime Minister Shehbaz Sharif had in June ordered a comprehensive technical audit of the billing systems of Discos, stressing that reforms in the power sector remained among the government’s foremost priorities. He instructed the power division to devise clear performance indicators to gauge the working of distribution companies and to set integrated targets backed by defined timelines. Nearly 1,800 cases related to power theft were reported in several service areas of the Lahore Electric Supply Company (Lesco) in Lahore metropolitan and the districts of Kasur, Okara, Sheikhupura and Nankana Sahib during the month of February. According to a Lesco spokesperson, of the total cases detected between July 1 and July 31, as many as 1,542 involved domestic consumers and three were related to agricultural connections. The company submitted requests for the registration of 1,531 first information reports (FIRs), of which 593 had been registered, while 38 suspects were arrested.