Technical assessment to identify high-loss areas, improve accountability and prevent consumers from bearing the cost of inefficiencies
ISLAMABAD: The federal government has approved a comprehensive technical audit of all electricity distribution companies (DISCOs) to determine the extent and causes of power theft, distribution losses and operational inefficiencies across Pakistan’s electricity network.
The audit will examine where losses are concentrated and identify measures to improve the performance of distribution companies while addressing concerns over excessive billing.
The decision was taken at a meeting of the committee established under the prime minister’s directive to address inefficiencies and electricity theft in DISCOs. The meeting was jointly chaired by Federal Minister for Economic Affairs and Establishment Division Senator Ahad Cheema and Federal Minister for Power Sardar Awais Ahmad Khan Leghari.
Audit to Examine Causes of Electricity Theft and Distribution Losses
The committee reviewed ongoing efforts to reduce electricity theft, improve bill recoveries and strengthen the operational performance of power distribution companies.
Officials from the Power Division, National Electric Power Regulatory Authority (NEPRA), Ministry of Information Technology and Telecommunication, Pakistan Digital Authority and other relevant institutions briefed the committee on theft, losses, recoveries and the use of technology in the power sector.
Following the discussions, the committee decided that every DISCO would undergo a detailed technical assessment.
The exercise will establish the scale of electricity theft, identify the underlying causes of technical and commercial losses, and determine the geographical areas where these problems are most severe.
The findings will form the basis for targeted measures to improve efficiency and reduce losses.
IT Ministry to Facilitate Technology-Based Assessment
The Ministry of Information Technology and Telecommunication has been tasked with providing technical support and facilitating the audit through a transparent and credible process.
An Expression of Interest will be issued shortly to engage qualified technical experts.
The committee also directed that the Terms of Reference for the audit be finalised by next week.
Senator Ahad Cheema emphasised that the exercise must go beyond identifying losses and provide a detailed diagnosis of the factors responsible for electricity theft and inefficiency.
He said the government required reliable findings that could be translated into practical corrective measures.
Consumers Must Not Pay for DISCOs’ Inefficiencies, Says Ahad Cheema
The committee made clear that electricity consumers should not be forced to bear the financial consequences of theft, distribution losses or poor management within power companies.
Ahad Cheema said the government remained focused on reducing electricity theft and would not allow inefficiencies in the distribution system to be passed on to the public.
He also described overbilling as unacceptable.
According to the minister, the audit will help the government introduce targeted, evidence-based interventions to address theft and losses.
He reiterated that all possible measures would be taken to prevent further growth in the power sector’s circular debt.
Power Division Focuses on High-Theft Areas
Power Minister Awais Leghari said the Power Division was working in line with the committee’s objectives and had been taking steps to control electricity theft and distribution losses.
He said particular attention was being given to distribution companies where theft remained widespread.
The committee was also briefed on incentive-based solarisation pilot projects in areas served by the Peshawar Electric Supply Company (PESCO) and Quetta Electric Supply Company (QESCO).
These areas have been identified as having particularly high levels of electricity theft and distribution losses.
The proposed solar energy arrangements are intended to reduce pressure on the electricity network and help address persistent problems involving theft and line losses.
Digital Monitoring and Reliable Data to Support Reforms
The committee examined technology-based measures already being introduced in the electricity distribution system.
It emphasised the need to use digital tools and dependable data to identify irregularities, improve monitoring and strengthen accountability.
The ministers acknowledged progress in addressing overbilling but warned that distribution companies would not be permitted to conceal electricity theft, losses or operational weaknesses by issuing excessive bills.
They reiterated that consumers must not be made responsible for failures within the distribution network.
Committee Reviews Improvement in Bill Recoveries
The committee also assessed the recovery performance of electricity distribution companies and expressed satisfaction with the improvement recorded during the current year.
The co-chairs stressed that this progress must be maintained through stronger governance, closer monitoring, technology-led reforms and focused action in areas experiencing substantial losses.
The nationwide audit is expected to provide the government with a clearer assessment of the distribution sector’s weaknesses and help guide future decisions on electricity theft, financial losses and consumer protection.
