Govt to Hand Over Loss-Making Discos to Pakistan Army

Thu Nov 30 2023
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ISLAMABAD: The Pakistan Army will be handed over the responsibility for overseeing the deficit-ridden Distribution Companies (Discos) to curb electricity theft and losses, as the government has decided to take strict action against power thieves as well as to enhance recovery of electricity bills, Geo News reported on Thursday.

According to the local media outlet, a serving brigadier, along with a team comprising officials from the Federal Investigation Agency (FIA) and Intelligence Bureau (IB), will supervise the Performance Monitoring Units (PMUs) in all Discos experiencing financial losses.

The monitoring team will have the mandate to identify corrupt elements in Discos as well as those involved in abetting and stealing electricity. These officials will be empowered with the authority to take action against the perpetrators.

The Secretary of Power confirmed the development to a local media outlet, stating that a plan has been formulated, pending approval from higher authorities. Nevertheless, the Power Division’s top officials are determined to initiate the plan, starting with HESCO (Hyderabad Electric Supply Company) as a pilot project.

The initiative aims to expose dishonest elements and individuals colluding in electricity theft, contributing to significant financial losses for the national exchequer.

Citing data from the financial year 2020-21, The News reported electricity bill recovery rates of 73.7% in HESCO, 64.6% in SPECO, 34.66% in QESCO, and 25.29% in TESCO. The caretaker energy minister, on September 6, highlighted a comprehensive crackdown plan on electricity theft, emphasizing an annual loss of Rs589 billion due to theft and non-payment of bills.

As of September 6, the total loss in relatively better-performing Discos—Lahore, Faisalabad, Gujranwala, Multan, and Islamabad—amounted to 79 billion units, equivalent to a Rs100 billion loss out of a billing total of Rs3,044 billion, estimated at 3%. Conversely, Discos in Peshawar, Hyderabad, Sukkur, Quetta, and Azad Jammu and Kashmir experienced losses as high as 60%.

However, given the inadequate results in loss-making companies like HESCO, SEPCO, QESCO, and TESCO, the decision has been made to entrust Performance Monitoring Units to a serving brigadier, supported by personnel from FIA and IB.

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