KP Government Open to Talks on Electricity Theft, Proposes Adjusting Dues

The Khyber Pakhtunkhwa (KP) government has expressed willingness to engage in discussions with the federal government regarding the critical issue of electricity theft in the region. Federal Energy Minister Sardar Awais Ahmad Khan Laghari initiated correspondence with KP Chief Minister Ali Amin Gandapur, emphasizing the necessity of addressing power pilferage, losses, and recovery of bills and arrears to develop a joint strategy for improving the situation.

Laghari highlighted the staggering estimated losses of Rs 188 billion incurred by Peshawar Electric Supply Company (PESCO) and Tribal Areas Electric Supply Company (TESCO) in the current financial year. He identified high-loss areas within PESCO's jurisdiction, including D.I. Khan, Bannu, Karak, Kohat, Shangla, and ex-FR Regions. TESCO, which operates in the former tribal areas, faces serious challenges of non-recovery and non-meterization, potentially leading to a loss of Rs 51 billion this year.

The federal government has launched a nationwide anti-theft campaign to tackle these issues, but its success heavily relies on the support and cooperation of the provincial government. Laghari underlined the urgency of police assistance in combating electricity theft and called upon the Chief Minister to personally oversee the cooperation of law enforcement agencies.

In response, the KP government has suggested adjusting their dues in electricity bills as a potential solution. This proposal aims to address the financial burden caused by power theft and non-payment of bills in the region.

Why this matters: The resolution of electricity theft issues in Khyber Pakhtunkhwa is crucial for the financial sustainability of the power sector and the reduction of the circular debt burden on the national economy. Collaborative efforts between the federal and provincial governments are essential to implement effective measures against power pilferage and ensure the recovery of outstanding dues.

Minister Laghari proposed two possible solutions to the KP government. The first involves the formulation of a comprehensive recovery plan by the provincial government to support TESCO in recovering dues and installing meters in areas under its jurisdiction. Alternatively, the provincial government could take over the power supply operations in the TESCO region. A committee headed by the Defense Minister has been constituted to hold consultative interactions with the KP government and other stakeholders to finalize a viable action plan.

"The federal government has sought cooperation from the Khyber Pakhtunkhwa (KP) government in the anti-power theft campaign in the jurisdiction of Peshawar Electric Supply Company (PESCO) and Tribal Electric Supply Company (TESCO)," stated Power Minister Sardar Awais Ahmad Khan Leghari in his letter to the KP Chief Minister. The collaborative effort between federal and provincial authorities is deemed imperative in addressing the complex challenges faced by the power sector in Khyber Pakhtunkhwa and ensuring the sustainability of electricity supply in the region.

Key Takeaways

• KP govt willing to discuss electricity theft issue with federal govt.
• PESCO and TESCO face Rs 188 billion and Rs 51 billion losses respectively.
• Federal govt seeks KP police assistance to combat electricity theft.
• KP proposes adjusting dues in electricity bills as a potential solution.
• Federal govt proposes recovery plan or TESCO takeover to address challenges.