Rs10bn recovered amid crackdown on power theft, Senate panel told

ISLAMABAD: The countrywide crackdown on power theft has yielded positive results as so far Rs10 billion have been recovered while the Power Division is expecting to collect up to Rs150 billion in the next five months. It was revealed by a representative of the Power Division in the Senate Committee on Energy’s meeting on Tuesday.

The committee received a report from the Power Division indicating that the ongoing anti-theft efforts had yielded results with daily recoveries reaching Rs1 billion. It is projected that the total collection will reach Rs150 billion within the next four to five months.

Senator Saifullah Abro, Chairman Senate Committee on Energy, suggested that the recovered funds should be utilized to provide relief to power consumers.

Nepra has been implementing a substantial tariff hike of Rs3 to Rs4 per unit as part of its routine practices, causing hardships to consumers nationwide, the Senate panel noted.

Meanwhile, the Senate committee raised concerns over irregularities in the extension of Kot Addu Power Company Limited (KAPCO)’s license.

The Senate committee chairman said incumbent Chairman Nepra Waseem Mukhtar held the position of additional secretary in the Power Division during the unauthorized extension of KAPCO Plant. He sought details on the tenure report of the additional secretary in the Power Division from January 2021 to December 2021.

The chair also inquired about the payments made to KAPCO Power Plant, even after expiry of the agreement in June 2021. The official from the Power Division explained that Rs151 billion had been disbursed as energy payments to KAPCO Power Plant, with 95 percent of the amount attributed to fuel charges.

The committee members raised questions about the reasons for the illegal extension and emphasized that any actions taken between KAPCO Power Plant and Power Division after the agreement’s expiry might be deemed unlawful. The committee chairman argued that not only the extension was illegal but the Power Division also lacked the authority to grant extensions to Independent Power Producers (IPPs).