Pakistan loses Rs. 250 billion annually to power theft and another Rs. 250 billion to the non-recovery of bills, Energy Minister Awais Leghari told the National Assembly Standing Committee on Power on Tuesday.
Chaired by Muhammad Idrees, the minister clarified misconceptions about the power sector, including regarding boosting consumption through new connections. He said electricity cannot be supplied to illegal housing societies or slums unless requested by local authorities. Distribution companies (DISCOs), he said, are only obligated to provide connections upon formal requests from relevant authorities.
“While supplying electricity to informal settlements may be financially beneficial for DISCOs, it ultimately burdens the national exchequer,” he said.
To another question about public anger over households losing protected status if their usage crosses the 200-unit threshold, the minister said this was necessary. To avoid overbilling, he said, consumers should avail the “Apna Meter, Apni Reading” mobile application.
Leghari explained that of the 380 million consumers in the country, around 180 million fell into the protected category. Additionally, he explained, this category has an annual growth of approximately four million consumers.
This subsidy, he emphasized, aims to support low and middle-income households. “Protected consumers are receiving electricity at an 80% discounted rate, which is the lowest in the region,” he said, adding that the recent surge in consumers using up to 300 units per month installing solar systems and only availing the grid at night had further increased the subsidy burden.
“We are moving toward reforms to ensure subsidies are extended equitably to truly deserving individuals. However, there are discrepancies in the Benazir Income Support Program data that need to be addressed to ensure fair treatment,” he said. Discussions are ongoing with the International Monetary Fund (IMF) and development partners to provide subsidized electricity to the industrial and agricultural sectors, he added.
The committee deferred discussion on discriminatory electricity loadshedding by Hyderabad Electric Supply Company (HESCO) and denial of basic utility rights to bill-paying constituents.
During the meeting, the CEO of PESCO informed the committee that local residents are unwilling to clear outstanding dues or accept individual electricity meters, and are insisting on a fixed monthly lump-sum payment per household. Due to this, several electricity connections have been disconnected. To resolve the issue, the MNA from Charsadda proposed providing solar energy to the affected villages.
However, the minister justified actions taken to curb illegal connections, adding electricity meters are being installed based on Computerized National Identity Cards. He urged the MNA to provide details of unauthorized connections.