Ministry of Energy Reports: Rs12.48 Billion Lost in 2024 Due to Power Theft
The Ministry of Energy recently disclosed alarming statistics regarding the impact of power theft on the economy in 2024. A staggering amount of Rs12.485 billion was reported as lost revenue due to electricity theft last year. This revelation was made during a session at the National Assembly, shedding light on the dire consequences of this illegal activity.
Recovery Efforts Underway
Efforts to combat electricity theft have been underway, with Rs5.83 billion already recovered from offenders engaged in this illicit practice. The crackdown resulted in the registration of 216,000 First Information Reports (FIRs) and the arrest of 62,452 individuals involved in power theft. The severity of the situation prompted the establishment of a Distribution Service Operations (DSO) unit in PESCO as part of the first phase to effectively tackle this issue.
Taxation Details by K-Electric
In addition to the revelations about electricity theft, the Ministry of Energy also shared details about the taxes collected on electricity bills by K-Electric. Consumers of K-Electric were subject to eight different types of taxes, including General Sales Tax (GST). The breakdown of these taxes indicated that K-Electric customers paid substantial amounts under various GST categories, income tax, withholding net metering, and TV license fees during the past year.
DISCOs and IPP Contracts Review
Federal Minister for Energy, Sardar Awais Ahmad Khan Leghari, addressed concerns regarding Power Distribution Companies (DISCOs) and the involvement of intelligence agencies. He clarified that no DISCOs were handed over to the Inter-Services Intelligence (ISI) and highlighted the collaborative efforts of intelligence units, the Federal Investigation Agency (FIA), and other stakeholders in curbing losses due to electricity theft.
Amidst these developments, Leghari shared that contracts with Independent Power Producers (IPPs) have been reviewed, resulting in significant savings for the national exchequer. Furthermore, tariff reductions for industrial and other consumers were implemented, aiming to alleviate the financial burden on consumers. The government’s plans to transition to an independent electricity market and reduce electricity purchasing after March this year signify a strategic shift in the energy sector.
Special Initiatives for Efficiency
To enhance recoveries and combat power pilferage, special units have been established by the Power Division. These initiatives demonstrate a commitment to improving the efficiency and integrity of the power sector, safeguarding the economy from further losses due to electricity theft.
