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.