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I am writing to share the frustration of people across the country over the constant hike in electricity rates, which has made it almost impossible for everyday citizens to afford electricity. These rising costs not only increase the financial pressure on households but also lead to an increase in default rates. Sadly, people resort to illegal connections and justify the act by saying that they can no longer afford to pay the bills.
A crackdown on power theft is often announced, with the Prime Minister leading a nationwide movement against it. Utilities are already cracking down on power theft and defaults in their core business, but companies can only do so much. Until the government tackles the underlying issues – such as the Rs 315 billion in arrears and the absence of a durable legal framework – these crackdowns will continue to decline. The Criminal Law (Amendment) Ordinance 2023 was a good first step by making theft a punishable offence, but it still needs parliamentary approval to actually make a difference.
Abdul Hai
Karachi
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It is surprising that Pakistan’s power sector is mired in the same problems that plagued it years ago. The power sector is crippled by revolving debts and rising electricity rates are pushing more people into default, leading to power outages as a result of non-payment of bills and power theft. Damaged areas increase. With unpaid bills on the rise, the pressure on utilities to make recoveries is high. Higher tariffs also lead to greater rupee depreciation for power suppliers, even when recovery rates remain stable. Due to the absence of a solid legal framework, pursuing cases and filing FIRs is lengthy – neither of which guarantees that unpaid bills will be recovered.
Despite such high rates of theft and default, it is unrealistic to expect utilities to recover all dues. Instead of putting all the responsibility on the utility companies, the government should close legal loopholes, and impose penalties on chronic defaulters and ‘conduit’ users.
Syed Mohsin Ali
Karachi
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